An Overview of the Equal Opportunity Commission and Small Businesses
1. What laws does the EEOC enforce and do they apply to your business?
Title VII of the Civil Rights Act of 1964 (Title VII) prohibits race, color, religion, sex, and national origin discrimination. Title VII applies to:
employers with fifteen (15) or more employees
Age Discrimination in Employment Act of 1967 (ADEA) prohibits age discrimination against individuals who are forty (40) years of age or older. The ADEA applies to:
employers with twenty (20) or more employees
Title I of the Americans with Disabilities Act of 1990 (ADA) prohibits employment discrimination against qualified individuals with disabilities. The ADA applies to:
employers with fifteen (15) or more employees
Equal Pay Act of 1963 (EPA) prohibits wage discrimination between men and women in substantially equal jobs within the same establishment. The EPA applies to:
most employers with one or more employees
These laws prohibit employment discrimination based on race, color, sex, religion, national origin, age, disability, and prohibit retaliation for opposing job discrimination, filing a charge, or participating in proceedings under these laws.
2. How do I determine if a business of my size is covered by the EEOC laws?
All employees, including part-time and temporary workers, are counted for purposes of determining whether an employer has a sufficient number of employees.
An employee is someone with whom the employer has an employment relationship. The existence of an employment relationship is most easily shown by a person’s appearance on the employer’s payroll, but this alone does not necessarily answer the question. Determining whether an employer has enough employees to be covered by these laws is, ultimately, a legal question.
Independent contractors are not counted as employees. Determining whether an individual is, under the law, an independent contractor, also is a legal question that may not be as easy to answer as you might think.
If you are unsure whether your business is covered, or whether an individual who works for you is covered, you need to seek legal advice. The IRS has established guidelines to determine the status of an individual which are helpful in this determination.
Anyone who believes that his or her employment rights have been violated because of race, color, sex, religion, national origin, age, disability or because of retaliation may file a charge of discrimination with EEOC. By law, EEOC must accept the filing of a charge.
3. When can a charge of discrimination be filed?
In most geographic areas, a charge must be filed with EEOC within 300 days from the date of the alleged discrimination. In a very small number of areas where a state or local employment discrimination law does not apply, a charge must be filed within 180 days.
4. Can a small business resolve a charge without undergoing an investigation or facing a lawsuit?
Yes. EEOC has a free mediation program. The program is voluntary and all parties must agree to take part. The mediation process is also confidential. Neutral mediators provide employers and charging parties the opportunity to reach mutually agreeable solutions. If the charge filed against your company is eligible for mediation, you will be notified by the EEOC of your opportunity to take part in the mediation process. In the event that mediation does not succeed, the charge is referred for investigation.
5. What employment records must I keep?
EEOC Regulations require that employers keep all personnel or employment records for one year. If an employee is involuntarily terminated, his/her personnel records must be retained for one year from the date of termination.
Under the Age Discrimination Employment Act (ADEA) record keeping requirements, employers must also keep all payroll records for three years. Additionally, employers must keep on file any employee benefit plan (such as pension and insurance plans) and any written seniority or merit system for the full period the plan or system is in effect and for at least one year after its termination.
Under the Fair Labor Standards Act (FLSA) record keeping requirements applicable to the EPA, employers must keep payroll records for at least three years. In addition, employers must keep for at least two years all records (including wage rates, job evaluations, seniority and merit systems, and collective bargaining agreements) that explain the basis for paying different wages to employees of opposite sexes in the same establishment.
Remember, these requirements apply to all employers covered by Federal anti-discrimination laws, regardless of whether a charge has been filed against the employer. When a charge has been filed, employers have additional record keeping obligations.
6. What reports must small employers file with EEOC?
In addition to material that is connected to the issues raised with the investigation of a charge of discrimination, the EEOC also collects EEO-1 Reports from some employers, regardless of whether a charge has been filed against the company.
Employment Information Report (EEO-1)
An EEO-1 Report is filed annually and provides a breakdown of the employer’s work force by race and gender.
Small employers are not required to file EEO-1 reports unless they:
- employ 100 or more employees
- employ 50 or more employees and have Federal contracts totaling $50,000 or more.
7. What are Fair Employment Practices Agencies and how do they relate to the EEOC?
There are more than 100 state and local Fair Employment Practices Agencies (FEPAs). The EEOC has cooperative relationships with all but a few of them.
The EEOC and the FEPAs it works with have reached Worksharing Agreements that divide up their common workload of charges in order to avoid duplication of charge processing. Each charge of discrimination that is covered by both an EEOC-enforced statute and the FEPAs law or ordinance is dual-filed under both laws, regardless of which agency receives it. These dual-filed charges are typically investigated by only one agency. This way, employers avoid two investigations of the same matter, but the legal rights of the charging parties are still preserved under both laws.
8. What do I do if I get the same charge from the EEOC and also from a state or local FEP agency?
Bring the matter to the attention of both agencies and they should be able to resolve the issue.
9. I settled a discrimination charge that was handled by my local FEPA and received a separate dismissal notice from the EEOC. What does this mean?
Most charges are dual-filed under both state and federal law. Regardless of which agency is processing the charge, both agencies have to close their respective case files. All that is happening in this instance is that the EEOC has accepted the state agency’s resolution and has closed its case.
10. How can I tell if a charge is dual-filed with the both the EEOC and a state or local FEPA?
The top of the charge form and the notice of charge form will usually indicate whether the charge has been filed with both the EEOC and a FEPA. If there is any doubt, ask the EEOC staff person handling the charge.
11. When an EEOC charge is dual-filed with a FEPA, and the EEOC decides that it does not have jurisdiction or does not believe federal law is violated, is that the end of the matter?
Maybe. Some state and local FEPA laws have longer charge filing periods, cover more employers (such as smaller employers than those covered by the federal anti-discrimination laws) or provide greater protections than federal law (such as laws prohibiting marital status discrimination). In such cases, the FEPA may continue to investigate the charge.
12. Does the EEOC sponsor seminars or activities where I can learn more about complying with the equal employment laws?
EEOC representatives are available, on request and at no cost, to provide information and answer questions about EEOC laws and procedures through presentations and meetings with employers and employer groups or organizations.
The EEOC’s Technical Assistance Program Seminars (TAPS) are designed to educate employers and provide technical assistance related to the federal anti-discrimination laws. TAPS programs are offered across the country on a fee-for-service basis.
If you are interested in specific on-site training designed to meet your particular business’ needs and circumstances, EEOC can develop and deliver customized training at your business location on a fee-for-service basis.
13. What publications can I order to help me comply with the employment laws?
EEOC publications (including the texts of the laws enforced by the EEOC, facts about employment discrimination, and enforcement guidances and related documents) are available free of charge from:
U.S. Equal Employment Opportunity Commission
Publications Information Center
P.O. Box 12549
Cincinnati, Ohio 45212-0549
(800) 669-3362 (voice)
(800) 800-3302 (TDD)
(513) 791-2954 (FAX)
