Why Discrimination Is an Issue at Work
Workplace discrimination involves subjecting someone to negative treatment, different from that of other employees, because of that person's gender, age, race or other characteristics. Certain types of workplace discrimination are illegal. Other types not explicitly prohibited by law are just as harmful both to the victim and to the overall health of the workplace.
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Legal Proceedings
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The Equal Employment Opportunity Commission, or EEOC, enforces laws against workplace discrimination. A local Fair Employment Practice Agency will investigate a discrimination claim. If the agency finds evidence to support the claim, the agency acts as a mediator, attempting to reach an agreement between the victim and the discriminating party. If this is unsuccessful, the agency may choose to initiate a federal lawsuit. Regardless of the agency's findings, the victim may choose to file a lawsuit independently.
Types of Discrimination
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Because workplace discrimination has been a persistent issue, several federal acts prohibit discrimination based on certain characteristics. These characteristics are protected classes. The Civil Rights Act of 1964 prohibits discrimination based on "race, color, religion, sex or national origin." The Age Discrimination in Employment Act prohibits age-based discrimination against people age 40 and older. The Equal Pay Act prohibits paying someone an unequal wage based solely on gender. The Americans with Disabilities Act and the Rehabilitation Act protect qualified disabled individuals. Although as of 2010 there are no federal laws protecting against discrimination based on sexual orientation, some states and cities prohibit this type of discrimination.
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Prevalence
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Workplace discrimination occurs in every employment sector. Despite federal laws, discrimination claims have risen, rather than diminished, in the last decade. In 1999, the EEOC received about 77,400 claims. By 2009, that figure had risen to more than 93,000. Of the charges filed in 2009, 36 percent were race based and 30 percent were on gender. Discrimination victims received $210 million in monetary benefits in EEOC-pursued cases in 1999 and more than $294 million in 2009.
Financial Cost
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Workplace discrimination can result in significant financial cost to a company and its shareholders. For example, six major companies have paid out an average of $136 million each in class-action lawsuit settlements in recent years. Female employees initiated a class-action lawsuit for gender-based discrimination against a major retail corporation in early 2010, which may prove to be one of the largest suits of its kind in history.
Productivity and Turnover
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Discrimination has long-term implications for the workplace aside from the direct financial cost of legal proceedings and settlements. When companies discriminate in hiring and promoting practices, the people holding important jobs are not necessarily the most qualified candidates. This reduces workplace efficiency and ultimately costs the company money. A company's reputation is at stake when it engages in discriminatory practices. Notable recent examples include a major oil company facing allegations of gender-based discrimination, and a leading family restaurant chain, charged with both racial and sexual orientation-based discrimination. A 2005 Gallup poll showed that employees felt the lowest levels of job satisfaction and morale when discrimination was an issue in the workplace. Low morale led to high job turnover rates, costly to companies.
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References
- Equal Opportunity Employment Commission: Federal Laws Prohibiting Job Discrimination
- Equal Opportunity Employment Commission: All Statutes -- FY 1997-FY 2009
- Equal Opportunity Employment Commission: Charge Statistics -- FY 1997-FY 2009
- University of Texas: The Price of Discrimination
- Bloomberg Businessweek: The True Cost of Discrimination
- USA Today Money: Cracker Barrel Customer Says Bias Was 'Flagrant'
- Photo Credit Jupiterimages/Goodshoot/Getty Images
