Tips to Avoid Costly Discrimination Claims

During fiscal year 1999, the federal government's anti-discrimination agency obtained a record $307.2 million in monetary benefits from private sector employers for award to individuals where discriminatory employment practices were found. The level of monetary benefits is double the benefits obtained on behalf of discriminated employees just four years ago. These findings are among the data available at the agency's web site www.eeoc.gov.

The federal government's anti-bias agency is known as the U.S. Equal Employment Opportunity Commission (EEOC). The agency enforces various federal laws which prohibit discrimination in employment because of race, color, age, sex, religion, national origin, or disability. Generally, employers with 15 or more employees are subject to the federal anti-bias laws. But employers with only one employee may be subject to certain parts of state law prohibiting discrimination; so, clearly, non-discriminatory employment practices should be a matter of concern for all employers. For example, consider these "achievements" listed in the EEOC annual report.

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The average processing time for resolving charges is 265 days or nearly nine months. The agency considers over 90 percent of charges filed by complainants to be meritorious. Such claims resulted in over 6400 findings of cause for discrimination in 1999, a 37 percent increase over the prior year Further, the agency filed some 112 lawsuits in 1999 seeking redress for discriminatory practices, an increase of 36 percent over the prior year.

Several significant case settlements are noted.

A $28 million settlement was reached in a class action lawsuit against a national insurance brokerage which is alleged to have forced certain employees to retire early.

A $25 million class action settlement was reached against two telephone companies providing benefits to some 10,000 employees who were unlawfully denied pension credit while on maternity leave.

A automotive company agreed to an $8 million settlement benefiting employees of its Chicago area plant who were subjected to sexual or racial harassment. The firm also agreed to conduct supervisory training and to promote more women into supervisory jobs.

A prominent grocery chain with stores in the Fox Valley reached a multi-million dollar settlement because of its alleged two track career path for men and women, limiting the women's opportunity to advance to the high paying store manager jobs.

Clearly, a finding of discrimination can be very costly for an employer. So what is an employer to do?

Many smaller firms try to operate their business without defined employment policies, preferring instead to use a flexible approach to deal with employment matters. Such a practice, however, is often viewed by employees as favoritism or even discrimination. The employee feels, "If you allowed her time off, why can't you do it for me?"

After 17 plus years of human resources consulting, I feel that the best way to prevent employee relations problems - and to defend against any legal claims is this: --Have a policy,--Communicate that policy to employees,-- and Demonstrate uniform fair administration of the policy.

It is important, of course, to have an understanding of how employment and anti-bias laws affect employment practices in order to define employment policies that comply with the law. For this reason, it is good to get professional advice if you are unable to keep up with these issues.

Here are some additional suggestions. First, define your policies in a guide book for supervisors or a manual for employees. Train supervisors about non-discriminatory practices and prevention of sexual harassment. Be consistent in the handling of employment matters. Document employment decisions such as performance ratings and disciplinary warnings. Deal with performance or misconduct issues when they occur.

The bottom line is this: when you give respect, you will get respect. Your actions do speak louder than words.