Anti-Discrimination Laws for Employers: Complete Guide

Smaller employer thresholds

While federal Title VII requires 15+ employees, many states cover smaller businesses. Examples: California (5+), Colorado (1+), Connecticut (3+), the District of Columbia (1+), Hawaii (1+), Maine (1+), Massachusetts (6+), Minnesota (1+), Montana (1+), New Jersey (1+), New York (4+), Oregon (1+), Vermont (1+), Washington (8+), and Wisconsin (1+). Even if you have just one or two employees, your state likely covers you.

Additional protected classes

Common state-level protections beyond federal law include:

• •Sexual orientation & gender identity: Explicitly protected in 20+ states (also covered federally after Bostock v. Clayton County, 2020)
• •Marital status: Protected in about 20 states
• •Lawful off-duty conduct: Several states protect employees from being fired for legal activities outside work (smoking, recreational cannabis in legal states)
• •Political affiliation: Protected in DC, California, New York, and a few other states
• •Credit history: About 11 states restrict use of credit information in employment decisions
• •Criminal history (ban the box): 35+ states limit when criminal background can be inquired about
• •Salary history: 20+ states and many cities prohibit asking about prior salary
• •Domestic violence victim status: Protected in several states including New York, Illinois, and Oregon

Stronger remedies

Some states allow larger damage awards than federal law, provide longer statutes of limitations for filing claims, or give state agencies more enforcement power. California and New York, for instance, have no cap on compensatory or punitive damages for discrimination claims, while federal Title VII caps damages based on employer size (ranging from $50,000 for employers with 15-100 employees to $300,000 for 500+ employees).

The interactive process

• •Employee requests accommodation(does not need to use the word "accommodation" or cite the ADA — any statement that they need a change due to a medical condition triggers the process)
• •Employer engages in dialogue to understand the limitation and identify possible accommodations
• •Employer may request medical documentation to verify the disability and understand functional limitations
• •Employer selects an effective accommodation (does not have to be the one the employee requests, but must be effective)

Common accommodations

• •Modified work schedule or flexible hours
• •Ergonomic furniture, standing desks, or assistive technology
• •Remote work or telework arrangements
• •Reassignment to a vacant position
• •Leave of absence for treatment
• •Modification of workplace policies (e.g., allowing a service animal)
• •Providing sign language interpreters or screen readers

Undue hardship defense

An employer can deny an accommodation if it would cause "undue hardship" — significant difficulty or expense considering the employer's size, financial resources, and the nature of the business. This is a high standard. Courts and the EEOC consider the overall resources of the business, not just one location. The fact that an accommodation costs money is generally not enough — the cost must be genuinely significant relative to the business.

Two types of illegal harassment

• •Quid pro quo: When a supervisor conditions an employment benefit (hiring, promotion, continued employment) on the employee submitting to unwelcome conduct (typically sexual). A single incident can constitute quid pro quo harassment.
• •Hostile work environment: When unwelcome conduct based on a protected class is so severe or pervasive that it creates an intimidating, hostile, or offensive work environment. This can include jokes, slurs, physical conduct, offensive images, or any conduct that unreasonably interferes with work performance.

Employer best practices

• •Written anti-harassment policy: Clearly define prohibited conduct, provide multiple channels for reporting (so victims do not have to report to their harasser), prohibit retaliation, and describe the investigation process.
• •Regular training: California requires 2 hours for supervisors and 1 hour for employees every 2 years (companies with 5+ employees). New York requires annual training for all employees. Illinois requires annual training. Even in states without a mandate, training is critical.
• •Prompt investigation: When a complaint is received, investigate promptly, thoroughly, and impartially. Document every step. Take appropriate corrective action if harassment is found.
• •No retaliation: Employees who report harassment or participate in investigations must be protected from retaliation. Retaliation claims are now the most commonly filed charge with the EEOC.