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| Summary of Employment
Laws |
| This summary booklet
is designed to provide accurate and authoritative
information regarding the subject matter covered.
It is released with the understanding that Riklan
Resources, LLC. is not engaged in rendering legal,
accounting, or other professional services. If legal
advice or other expert assistance is required, the
services of a competent professional person should
be sought. |
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Americans with Disabilities Act (ADA) |
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The
Americans with Disabilities Act (ADA) is a federal
anti-discrimination law which prohibits private employers,
state and local governments, employment agencies,
and labor unions from discriminating against qualified
individuals with disabilities in job application procedures,
hiring, firing, advancement, compensation, job training,
and other terms, conditions and privileges of employment.
This law (covering employers with 15 or more employees)
is designed to remove barriers, which prevent qualified
individuals with disabilities from enjoying the same
employment opportunities that are available to persons
without disabilities. When an individual's disability
creates a barrier to employment opportunities, the
ADA requires employers to consider whether a reasonable
accommodation could remove the barrier.
Disability
An individual has a disability
under ADA when one or more of the following are true: |
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Have a physical or mental impairment
that substantially limits one or more major
life activities |
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Have a record of such an impairment |
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Are regarded as having such an
impairment |
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Qualified
Individual
A qualified
individual is one who, with or without a reasonable
accommodation, can perform the essential functions
of a job.
Reasonable
Accommodation
A
reasonable accommodation is a modification of a job
which will allow an individual with a disability to
perform the job's essential functions. An employer
is required to make a reasonable accommodation to
a known disability of a qualified applicant or employee.
A reasonable accommodation may include, but is not
limited to: |
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Making facilities used by employees
readily accessible and usable by persons with
disabilities |
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Job restructuring |
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Modifying work schedules |
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Reassignment to a vacant position |
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Acquiring or modifying equipment
or devices |
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Adjusting or modifying examinations,
training materials, or policies |
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Providing qualified sign language
interpreters |
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A
reasonable accommodation does not include lower production
and quality standards. In addition, the employer does
not need to provide an accommodation that would impose
an "undue hardship" on the business. For
more information, call the Job Accommodation Network
at 800-526-7234 or www.jan.wvu.edu.
Penalties for Noncompliance
The Act is enforced by
the Equal Employment Opportunity Commission and the
penalties are the same as for violations of Title
VII of the Civil Rights Act with maximum amounts for
intentional discrimination mandated by the Civil Rights
Act of 1991. |
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Age
Discrimination in Employment Act |
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The
Age Discrimination in Employment Act of 1967 (ADEA) protects
workers age 40 and over by prohibiting discrimination against
workers 40 and over in any employment or employment-related
decision. The Act applies to most employers with 20 or more
employees. One of the main provisions of the Act is that
employers, with very few exceptions, can no longer force
an employee to retire. Voluntary retirements are allowed,
however, very specific conditions must be met in order to
avoid violation of the Act.
Penalties
for Noncompliance
Employees
may be awarded back pay, reinstatement, retroactive seniority,
and attorney's fees. Liquidated damages equal to the amount
of back pay may be awarded if the violation is willful. |
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COBRA |
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COBRA
is a popular name of the Consolidated Omnibus Budget Reconciliation
Act of 1985. The Act mandates that employers (with more
than 20 employees on 50 percent of the business days of
the previous year) continue health care coverage for employees
enrolled in the benefit plan for a certain number of months
(usually 18) after they suffer a loss of health care benefits.
The loss of benefits is usually caused by termination of
employment or a reduction in hours that makes employees
ineligible for the benefit plan. All persons covered by
a plan, including spouses and children, for example, are
eligible for COBRA.
The employee pays health care continuation coverage premiums
in full and the employer may charge the employee two percent
of the premium for administrative costs. The Act mandates
the length of time employees has to elect COBRA benefits,
response time for employers, and what notices must be provided..
Penalties for Noncompliance
Under ERISA, the penalty for failure
to provide notice is $100 per day per violation until notice
is provided to employees or beneficiaries. Under the Internal
Revenue Code the penalty is an excise tax of $100 per day
per violation for each qualified beneficiary during the
non-compliance period. A qualified beneficiary who did not
receive coverage can bring a lawsuit against the employer. |
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Consumer
Credit Protection Act |
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The
Consumer Credit Protection Act prohibits employees from
being terminated for garnishments for any one indebtedness.
Although two or more garnishments do allow an employer to
terminate, care should be exercised to prevent disparate
impact if the employees being terminated are mostly women
and minorities. Employers who have a business need to evaluate
and monitor employee credit problems and who use credit
reports to do so should also be aware of the Fair Credit
Reporting Act..
Penalties
for Noncompliance
A fine
of up to $1,000, one-year imprisonment, or both, and actual
damages, punitive damages, and attorney's fees. |
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ERISA |
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The
Employee Retirement Income Security Act of 1974 (ERISA)
sets requirements for the provision and administration of
employee benefit plans. Employee benefit plans include health
care benefits, profit sharing, and pension plans, for example.
ERISA requires companies that meet certain criteria to file
a form (Form 5500) annually with the Internal Revenue Service
that discloses basic information about each benefit plan,
such as plan expenses, income, assets, and liabilities.
ERISA also requires employers to submit an annual Summary
Report to plan participants and beneficiaries. In addition,
ERISA requires that all new plan participants receive a
summary plan description (SPD) no later than 90-days after
becoming covered. Plan participants must be provided SPD's
within 30 days of a request for the document.
Penalties for Noncompliance
The IRS and the Department of Labor
jointly enforce ERISA requirements. Willful violations result
in criminal and civil penalties.. |
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Employee
Polygraph Protection Act |
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The
Employee Polygraph Protection Act prohibits most private
employers from requiring employees or candidates for employment
to submit to a lie detector test. The only time an employer
may ask (but not require) an employee to take a polygraph
test is in the conduct of an on-going investigation into
theft, embezzlement, or a similar economic loss, or if the
employee has a reasonable suspicion that the employee was
involved. Employees who take a polygraph test may not be
discharged or suffer any other negative consequences solely
on the basis of the test without other supporting evidence.
The Act strictly mandates how polygraph tests may be administered
and how the results are used.
Penalties
for Noncompliance
Up to
$10,000 in civil penalties; aggrieved candidates for employment
may obtain employment; aggrieved employees may be awarded
reinstatement, back pay, and benefits.. |
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Equal
Pay Act |
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The
Equal Pay Act is an amendment to the Fair Labor Standards
Act which prohibits employers from discriminating between
men and women by paying one gender more than the other "for
equal work on the jobs the performance of which requires
equal skill, effort, and responsibility, and which are performed
under similar working conditions."
Penalties for Noncompliance
Back pay for up to two years, or three
years if the violation was willful and liquidated damages
in an amount equal to back pay. |
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Executive
Order 11246 |
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This
Executive Order prohibits federal contractors from discriminating
against employees on the basis of race, color, religion,
gender, or national origin. It is similar to the Civil Rights
Act, but has the further requirement that federal contractors
with contracts exceeding $50,000 and a workforce of more
than 50 employees maintain an Affirmative Action Plan regarding
the utilization of people in the protected class.
Penalties for Noncompliance
The Office of Federal Contract Compliance
Programs may suspend, terminate, or cancel the employer's
contract and declare them ineligible to compete for future
federal contracts. |
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Fair
Credit Reporting Act (FCRA) |
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The
Fair Credit Reporting Act of 1970 requires employers who
deny employment on the basis of a credit report to so notify
the applicant and to provide the name and address of the
consumer-reporting agency used. The Consumer Credit Reporting
Reform Act of 1996 makes major modifications to the FCRA
including the requirement that companies who use consumer
credit reports or investigative consumer reports provide
a separate written disclosure to applicants or employees
of their intentions, obtain written authorization from applicants
or employees to obtain the report, and certify to the credit
reporting agency that appropriate procedures have been followed.
Users of detailed investigative consumer reports have additional
disclosure responsibilities.
Additionally, employers who take adverse action against
any employee or applicant that is in any way related to
consumer report information must notify the individual (via
oral, written, or electronic means) of the adverse action
taken, the name, address, and phone number of the agency
used, as well as a statement that the adverse action was
not made by the reporting agency and that they will be unable
to explain the reason behind the decision.
Penalties for Noncompliance
Actual damages, costs, and attorney's
fees; additional punitive damages for willful non-compliance;
actual damages, fines of at least $1,000 plus imprisonment
up to two years for obtaining a report under false pretenses. |
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Fair
Labor Standards Act |
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Most
employers are covered by the Fair Labor Standards Act (FLSA).
The Act covers public agencies and businesses engaged in
interstate commerce or providing goods and services for
commerce. The FLSA provides guidelines on employment status,
child labor, minimum wage, overtime pay, and record-keeping
requirements. It determines which employees are exempt from
the Act (not covered by the Act) and which are non-exempt
(covered by the Act). It establishes age and time requirements
when minors can work. It sets the minimum wage that must
be paid and mandates when overtime must be paid.
The Minimum Wage
Effective September 1, 1997, the federal
minimum wage is $5.15 per hour. The minimum wage is subject
to review by the Federal government and may be changed from
time to time.
(NOTE: Many states have higher minimum wage provisions which
supercede the FLSA.).
Overtime
Employees covered by the FLSA must
be paid at least one and one half times their regular rate
for all hours worked in excess of 40 in a week (seven consecutive
days). The regular rate of pay must be determined to calculate
overtime pay and it includes the base rate, bonuses, commission,
piece rates, incentives, shift differentials, and training
pay.
The regular rate of pay excludes premium pay under a union
contract for Saturdays, Sundays, and holiday pay for time
not worked (i.e., vacation, sick time, holidays); contributions
to pension and insurance plans; gifts employer discretionary
bonuses; distributions from profit sharing plans that meet
Wage and Hour regulations; contributions to bona fide thrift
and savings plans; and longevity plans..
Test for Exemption from Overtime
Provisions of the FLSA
Executives
are exempt from the Act: |
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Whose primary duty is managing an enterprise
of customarily recognized department or subdivision |
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Who customarily and regularly direct
the work of two or more employees |
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Who has the authority to hire or fire
other employees |
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Who customarily and regularly exercises
discretionary powers |
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Who does not devote more than 20 percent
of work time to non-exempt work |
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Who is compensated for services on
a salary basis at a rate of not less than $155 per
week |
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Personnel are exempt from the Act: |
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Whose primary duty consists of: |
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performance of
office or non-manual work directly related to
management policies or general business operations
or |
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administration of a school system |
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Who customarily and regularly exercises
discretion and independent judgment |
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Who regularly and directly assists
a proprietor, a bona fide executive, or administrative
employee |
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Who performs work under only general
supervision along specialized or technical lines |
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Who does not devote more than 20 percent
of work time to non-exempt work |
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Who is compensated for services on
a salary or fee basis of not less than $155 per week |
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| Professionals
are exempt from the Act: |
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Whose primary duties consist of the
performance of: |
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work requiring
knowledge of an advanced type in a field of
science or learning |
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work that is original and creative
in character |
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teaching, tutoring, or instructing |
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Whose work requires consistent exercise
of discretion and judgment in its performance |
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Whose work is predominantly intellectual
and varied in character |
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Who does not devote more than 20 percent
of work time to non-exempt work |
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Who is compensated for services on
a salary or fee basis at a rate of not less than $170
per week |
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Sales people are exempt from the Act: |
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Who customarily and regularly
works away from the employer's premises in making
sales or obtaining orders or contracts |
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Whose work other than
making outside sales or obtaining orders or contracts
for service cannot exceed 20 percent of the hours
worked in a workweek by non-exempt employees |
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related occupations are exempt from the Act: |
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Whose primary duties consist of: |
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work requiring
knowledge of an advanced type in a field of
science or learning |
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work that is original and creative
in character |
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teaching, tutoring, or instructing |
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If compensated on a salary or fee basis
at the rate of at least $27.63 per hour |
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FLSA
Record keeping Requirements
NOTE:
State requirements may be stricter. |
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Name, address, date of birth if under
19 |
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Day and hour on which the work week
begins |
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Number of hours worked each day and
total number of hours worked each week |
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Inclusions and exclusions from regular
rate of pay |
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Total daily or weekly straight time
earnings |
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Total overtime earnings |
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Total deductions from earnings |
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Total wage each period |
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Date of payment, amount, and period
included in payment |
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Hours
of Work
All time spent
in an employee's principal duties and all essential ancillary
activities must be counted as work time. Principal duties
include productive tasks. Work time is compensable if expended
for the employer's benefit, if controlled by the employer,
or if allowed by the employer. Activities which occur before
or after an employee's principal duties need not be counted
as work time. Some examples:
Clothes
Changing and Washing
Not
compensated unless done at the work place at the employer's
request or because of the nature of the principal duties,
such as handling toxic chemicals. May be subject to a collective
bargaining agreement.
Travel
Time
Travel to and from
work is not generally compensable. Travel in the course
of the day, such as from one job site to another, is compensable
work time. Travel out of town may be compensable depending
on when it occurs and whether the trip is overnight.
Meal Periods and Breaks
Meal periods are not compensable if
they last for more than half an hour if the employee is
relieved of all duties and if the employee is free to leave
the work place. Breaks of 15 minutes or less are considered
work time and are compensable.
Test
for Exemption from Overtime Provisions of the FLSA
Executives are exempt from the Act:
Training Time
Training is not considered work time
if all these conditions are met: |
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It is outside of regular work hours |
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Attendance is in fact voluntary |
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No product work is performed there |
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The training is not directed toward
making the employee more proficient in his or her
present job |
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Child
Labor
The FLSA prohibits
the employment of oppressive child labor and regulates the
hours which children may permissibly work. The requirements
become stricter as the age decreases. Children are divided
into three groups: 16 and 17 year olds, 14 and 15 year olds,
and all younger children, for regulatory purposes. The hours
that they may work and the occupations at which they may
work vary from group to group. Anyone under age 18 is considered
a child. States frequently regulate the employment of minors
and the requirements vary from state to state.
Penalties for Noncompliance
The Department of Labor administers
the Fair Labor Standards Act. Employers who willfully or
repeatedly violate the Act may be penalized up to $1,000
per violation. |
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Family
and Medical Leave Act |
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Family and Medical Leave Act (FMLA) allows employees who
have met minimum service requirements (12 months employed
by the company with 1,250 hours of service in the preceding
12 months) to take up to 12 weeks of unpaid leave for: |
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A serious health condition |
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To care for a family member with a
serious health condition |
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The birth of a child |
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The placement of a child for adoption
or foster care |
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Although
there is no complete list of medical conditions which are
considered serious health conditions, there are six general
categories which must be evaluated to determine if an employee
(or their family member) has a serious health condition.
This determination is made by the employee's (or family
member's) doctor on the Certification of Health Care Provider
form. Reasons #3 and #4 are considered family leave, therefore
there is no medical issue attached to the request for leave
and the certification form does not need to be completed,
although the employee must usually provide at least 30 days
advance notice before the leave is to begin.
The FMLA requires employers to: |
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Allow their eligible employees to take
up to 12 weeks of unpaid leave for the above circumstances
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Provide continued health benefits during
leave |
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Restore employees to
the same position upon return from leave (or to a
position with the same pay, benefits, and terms and
conditions of employment) |
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Appropriately notify employees of their
rights and responsibilities under the Act |
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Scheduling
Employees can take 12 weeks of leave
in: |
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One block of time |
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In small blocks as needed (intermittent
leave) |
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On a reduced work schedule (i.e., part
time for 24 weeks) |
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Managers
may need to rearrange the duties of other workers or hire
a temporary worker to cover the responsibilities of a worker
on FMLA leave. With few exceptions, it is important not
to interfere with an employee's right to use FMLA leave
and be reinstated upon completion of the leave. The employer
can expect reasonable notice and may exercise some control
in cases of intermittent or reduced work schedule leave,
however.
Recording
FMLA Leave
It is the employer's
responsibility to designate leave as FMLA leave, whether
the employee mentions FMLA or not. The employee must be
promptly notified that leave will be counted as FMLA leave
to limit the total amount of time the employee can be away
from work. The employee has the responsibility to notify
the employer of the need for leave and to provide enough
information so the employer can determine if the leave qualifies
under FMLA.
Reinstatement
When an employee is ready to return
from leave, as long as it has not exceeded the 12-week FMLA
maximum, he or she must be restored to an equivalent position
with equivalent pay, benefits, and terms and conditions
of employment (such as work schedule, eligibility for promotions,
bonuses, etc.) In most cases, therefore, employers will
restore the employee to his or her original position.
Penalties for Noncompliance
Employees may recover back pay and
benefits with interest, as well as reinstatement and/or
promotion. Attorney's fees and costs may also be awarded.
In the absence of FMLA, state family and medical leave laws
and state temporary disability requirements, small companies
have several options: |
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Provide no paid leave or guarantee
of reinstatement following absence for family for
medical reasons |
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Provide paid leave for medically necessary
absences only (pregnancy must be treated like any
other medical absence) |
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Provide unpaid maternity/paternity
leave |
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Some combination of the above |
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Health
Insurance Portability and Accountability Act (HIPAA) |
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The
Health Insurance Portability and Accountability Act (HIPAA)
was enacted to make health insurance more "portable"
from one employer to another. The law causes employers to
change procedures for both new hires and employees who are
leaving the company. Employees who are new to a company
can use evidence of previous health care coverage to reduce
or eliminate the new employer's pre-existing condition requirement.
Employees who are leaving a company must be provided a certificate
of prior health care coverage to use for this purpose. The
law includes other provisions regarding restrictions on
pre-existing conditions, special enrollment rights, and
protections against discrimination.
Penalties
for Noncompliance
$100
per day for each employee up to $500,000 for willful violations. |
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Immigration
Reform and Control Act |
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The
Immigration Reform and Control Act (IRCA) prohibits the
employment of individuals who are not legally authorized
to work in the United States or in an employment classification
that they are not authorized to fill. The IRCA requires
employers to certify (using the I-9 form) within three days
of employment the identity and eligibility to work of all
employees hired. I-9 forms must be retained for three years
following employment or one year following termination,
whichever is later.
The IRCA also prohibits discrimination in employment-related
matters on the basis of national origin or citizenship.
Discriminatory actions include, but are not limited to,
requesting additional documents beyond those required, refusing
to accept valid documents or consider an applicant who is
suspected of being an illegal alien or harassing or retaliating
against employees for exercising their rights under the
law.
Penalties
for Noncompliance
Civil
fines of $100 to $10,000 per violation for record keeping
and employment violations. Back pay/front pay and attorney's
fees for discriminatory actions. Criminal penalties may
be imposed for repeated violations. |
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National
Labor Relations Act |
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The
National Labor Relations Act (NLRA), passed in 1935, provides
that all employees have the right to form, join, and assist
labor organizations and to bargain collectively with their
employers. The National Labor Relations Board enforces the
Act and the body of decisions and regulations from the Board
have formed an extensive set of standards for electing and
decertifying unions, for negotiating bargaining agreements,
and for defining activities as fair or unfair labor practices.
Penalties for Noncompliance
The National Labor Relations Board
addresses violations of the Act and a wide variety of penalties
may be applied, depending on the type of violation. |
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New
Hire Reporting Provisions of the Personal Responsibility
and Work Opportunity Act (Welfare Reform) |
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Effective
October 1, 1997, the new hire reporting provisions require
states to establish directories of new hires for tracking
child support evaders. Although state laws may impose additional
requirements, including shorter time periods for reporting,
federal law requires employers to report the name, address,
and social security number (along with name, address, and
tax ID number of the employer) of all new hires to the designated
state agency within 20 days. Such reports may be in the
form of a copy of the W-4 or the equivalent and can be transmitted
magnetically, electronically, or via first class mail. Multi-state
employers may officially designate one state to whom they
will report.
Penalties
for Noncompliance
States
may establish their own penalties to a federal maximum of
$25 per new hire unless such non-compliance is the result
of a conspiracy between employee and employer, in which
case the maximum fine is $500 per new hire. |
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Occupational
Safety and Health Act |
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The
Occupational Safety and Health Act of 1970 (OSHA) includes
a "general duty clause" that requires virtually
all employers to maintain a workplace that is free from
recognized hazards that would cause injury or death to employees.
Most employers must comply with OSHA workplace safety and
health standards that apply to their workplaces. OSHA requires
employers to maintain a log of certain injuries and illnesses,
report certain deaths and multiple hospitalizations, and
post supplementary records on an annual basis. Employers
may not discharge employees who refuse to do a job that,
by their reasonable apprehension, places them at risk of
injury or exposes them to a hazardous workplace condition.
The standards are voluminous and may be obtained from the
Government Printing Office.
Penalties
for Noncompliance
Civil
penalties up to $1,000 for individual violations; up to
$10,000 for repeated and willful violations; back pay and
reinstatement for employees who suffered discrimination. |
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Pennsylvania
Human Relations Act |
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The
purpose of the Pennsylvania Human Relations Act is to prevent
and eliminate unlawful discriminatory practices in employment
because of race, color, religion, ancestry, age (40 and
above), sex, national origin, non-job related handicap or
disability, known association with a handicapped or disabled
individual, possession of a diploma based on passing a general
education development test, or willingness or refusal to
participate in abortion or sterilization.
The Act applies to employers of four or more people, including
units of state and local government, labor organizations,
and employment agencies.
According to the Act, it is unlawful for an employer, labor
union or employment agency to: |
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Deny any person an equal
opportunity to obtain employment, to be promoted,
and to be accorded all other rights to compensation,
tenure, and other terms, conditions, and privileges
of employment |
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Deny membership rights and privileges
in any labor organization |
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Deny any person equal opportunity to
be referred for employment |
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Refuse to contract or
otherwise discriminate in contracting with any independent
contractor who is licensed by the Bureau of Professional
and Occupational Affairs |
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It
is also unlawful for any person, employer, labor union,
or employment agency to retaliate against an individual
because the individual has filed a compliant with the Pennsylvania
Human Relations Commission, or has otherwise participated
in any Pennsylvania Human Relations Commission proceeding,
or for any person to aid or abet any unlawful discriminatory
practice under the Human Relations Act.
The provisions of this Act do not apply to any individual
employed in agriculture or domestic service, any individual
who resides in the personal residence of the employer as
part of their employment, or any individual employed by
his or her parents, spouse, or child. |
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Pennsylvania
Minimum Wage Act |
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The
Pennsylvania Minimum Wage Act establishes a fixed minimum
wage and overtime rate for employees with certain exceptions.
It also sets forth compliance-related duties of the Department
of Labor and Industry and of employers. In addition, the
Act provides penalties for non-compliance. Employers must
maintain an accurate record of each employee's earnings
and hours worked.
The Act establishes the minimum wage of $5.15 per hour effective
September 1, 1997. The Act also establishes that in determining
the hourly wage of a tipped employee (one who makes $30.00
a month in tips) an employer may take a tip credit not to
exceed 45 percent. Overtime must also be paid at one and
one half times the regular rate of pay after 40 hours worked
in a week.
The following positions are exempt from the overtime rate: |
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Seaman |
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Any salesman,
partsman, or mechanic primarily engaged in selling
and servicing automobiles, trailers, trucks, farm
implements, or aircraft, if employed by a non-manufacturing
establishment primarily engaged in the selling of
such vehicles to ultimate purchasers |
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Driver of a taxicab |
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Announcer, news editor, chief engineer
of a radio or television station, the major studio
of which is located in : |
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city or town of
100,000 population or less, provided it is not
part of a standard metropolitan statistical
area having a total population in excess of
100,000 |
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city or town of
25,000 population or less, which is part of
such an area but is at least 40 airline miles
from the principal city in the area |
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Any employee engaged in the processing
of maple sap into sugar (other than refined sugar)
or syrup |
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Employment by an establishment which
is a motion picture theatre |
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Any employee of a motor
carrier with respect to whom the Federal Secretary
of Transportation has power to establish qualifications
and maximum hours of service under 49 U.S.C. 3102(b)(1)
and (2) (relating to requirements for qualifications,
hours of service, safety, and equipment standards) |
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The
Act provides special allowances for students, learners,
and people with disabilities upon application.
Learners and students (bona fide high school or college),
after obtaining a Special Certificate from the Secretary
of Labor and Industry through the Bureau of Labor Law Compliance,
may be paid 85% of the minimum wage as follows:
Learners: 40 hours a week (maximum eight weeks)
Students: Up to 20 hours a week. Up to 40 hours a week during
school vacation periods
Individuals with a physical or mental deficiency or an injury
may be paid less than the applicable minimum wage if a license
specifying a rate commensurate with productive capacity
is obtained from the Secretary of Labor and Industry through
the Bureau of Labor Law Compliance or a Federal certificate
is obtained under Section 14 (c) of the FLSA from the U.S.
Department of Labor.
Penalties
for Noncompliance
Failure
to pay the statutory minimum wage and overtime compensations
results in cumulative back wage liabilities. Violation of
the law may result in civil and/or criminal action. |
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Small
Business Job Protection Act |
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| The
Small Business Job Protection Act (SBJPA) of 1996 includes
provisions related to the Fair Labor Standards Act, educational
assistance, the Work Opportunity Tax Act, pension plans,
and other requirements. To the extent possible, the relevant
provisions will be discussed in the corresponding sections
of this booklet. |
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Title
VII |
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Title VII is
a provision of the Civil Rights Act of 1964 which prohibits
discrimination in virtually every employment circumstance
on the basis of race, color, religion, gender, pregnancy,
or national origin. In general, Title VII applies to employers
with 15 or more employees. The purpose of Title VII's protections
is to "level the playing field" by forcing employers
to consider only objective, job-related criteria in making
employment decisions. The above classes of individuals are
considered "protected" under Title VII because
of the history of unequal treatment which has been identified
in each class. Title VII must be considered when reviewing
applications or resumes (i.e., by not eliminating candidates
on the basis of a "foreign" last name), when interviewing
candidates (i.e., by asking only job-related questions),
when testing job applicants (i.e., by treating all candidates
the same and ensuring that tests are not unfairly weighted
against any group of people), and when considering employees
for promotions, transfers, or any other employment-related
benefit or condition.
The Pregnancy Discrimination Act of 1978 amended Title VII
to provide that pregnant women are treated the same as other
employees who are disabled. The employer's policies for
taking leave, health benefits during leaves, and reinstatement
after leave applies equally to pregnant women and other
employees. See also the Family and Medical Leave Act.
Sexual Harassment
Sexual harassment is prohibited under
Title VII of the Civil Rights Act. Unwelcome sexual advances,
requests for sexual favors, and other verbal or physical
conduct of a sexual nature constitute sexual harassment
when: |
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Submission to such conduct is made
either explicitly or implicitly a term or condition
of an individual's employment |
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Submission to or rejection
of such conduct by an individual is used as the basis
for employment decisions affecting an individual |
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Such conduct has the
purpose or effect of unreasonably interfering with
an individual's work performance or creating an intimidating,
hostile, or offensive work environment |
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Whenever sexual
harassment is claimed or suspected in the workplace, it
should be promptly and thoroughly investigated. Ignoring
and/or ignorance of its occurrence within the workplace
do not alleviate the company's liability. Sexual harassment
claims can cost a company millions of dollars.
Sexual harassment is prohibited by the Civil Rights Act
and the same penalties for non-compliance apply.
Penalties for Noncompliance
For intentional discrimination,
employees may see a jury trial with compensatory and punitive
damages up to the maximum limitations established by the
Civil Rights Act of 1991 according to the employer's number
of employees: |
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15 – 100 employees – a
maximum of $50,000 |
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