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5/6/2010

EEOC Alert for Small Business Owners
The Equal Employment Opportunity Commission (EEOC) investigates and enforces employment laws. EEOC’s budget increased nearly $23million for 2010. Business owners should be aware of potential liabilities regarding employment practices and wage and hour claims, which outpace all other types of workplace class actions.

These common complaints filed with the EEOC:

  • Discrimination based on retaliation, race or age
  • Job-bias charges alleging discrimination based on disability, religion or national origin
  • Hostile work environment, harassment or sexual harassment

The EEOC believes the increase in applicant and employee claims are influenced by:

  • Greater employee awareness of their rights under the law
  • Greater public accessibility to the EEOC
  • Simplified EEOC intake process
  • Difficult economic conditions
  • Increased diversity and demographic shifts in the labor force

Have you examined how your company works with applicants, employees and termination policies? Are your practices based on lawful interviewing questioning? Do you screen for new employees and internal promotions based on qualifications and non-discriminatory criteria?

You will have areas of exposure if you are doing the following:

  • Improperly classifying employees as ‘exempt status’ (salaried) while they perform ‘non-exempt status’ (hourly) duties. (Wage and hour violation)
  • Withholding overtime pay to a ‘non-exempt status’ (hourly) employee when they work over 40 hours per week. (Wage and hour violation)
  • Asking questions relating to marital status, childcare issues, or how they will get to work. (Sex, race, national origin, or age discrimination)
  • Keeping I-9 information in personnel files. (Sex, race, national origin, age, or disability discrimination)
  • Denying a qualified 42-year-old female a promotion and choosing an equally-qualified 39-year-old male (Age or sex discrimination)
  • A manager teasing or complimenting an employee about their appearance (Harassment or sexual harassment)

Terminating a Canadian citizen instead of a U.S. citizen (National origin discrimination)

With the increase in funding, the EEOC will be stepping up their enforcement audits and systematic investigations this year. 

Reduce your exposure by knowing that…

  • Salaried, ‘Exempt status’ employees have a claim if they are doing the same work as hourly employees. You can be liable for unpaid overtime going back two years. (Wage and hour violation)
  • If your pay period is every two weeks, you must pay overtime based on time worked each week. An employee that worked 50 hours one week and 30 the next is due overtime pay for the 10 extra hours worked in the first week. (Wage and hour violation)
  • Asking about an applicant’s personal life is illegal and can result in a variety of claims. (Sex, race, national origin, age, marital status, pregnancy status, or parental status discrimination)
  • It is important to keep I-9 information separate from personnel files. The I-9 contains information on age, ethnicity, and race that cannot be used when making hiring, firing or promotion decisions. (Sex, race, national origin, age, or disability discrimination)

The dollar amount and number of employee claims against employers are on the rise with significant monetary risk to employers. The average cost to defend an EEOC claim is $140,000, excluding punitive awards. Reduce your risk of exposure and ensure a high performing and ethical company culture by doing the following:

  • Develop and follow practical workplace conduct policies – EEO/AA, Attendance, Alcohol and Substance Abuse, Performance Reviews, Time-Off, etc.
  • Develop clear employee hiring criteria - Policies for job posting, legal interviewing questions and training, pre-employment testing, uniform job descriptions, etc.
  • Perform a wage and hour audit to assure compliance with ‘exempt’ and ‘non-exempt’ laws.
  • Address employee disciplinary issues consistently - Insubordination, rules violations and theft of company property.
  • Train your employees about: sexual, racial, ethnic, and religious harassment or bullying.
  • Develop and consistently follow policies about corrective action, demotions, transfers, terminations and employee records retention.

HR Consulting Solutions is an outsourced Human Resources firm that can meet your HR needs, whether they are large, small or mid-sized. Mary McCuen has over 20 years experience in Human Resources. Discover your HR solutions at 303-717-7311 or Mary@HRconsultingsolutions.com




Posted By: Mary McCuen - HR Consulting Solutions
at 5/6/2010 5:23:00 PM





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