Josephine's Personnel Services, Inc.

Workplace Discrimination: What Are the Consequences for Employers?

October 15th, 2013
What are the consequences?

What are the consequences?

In part two of this series on workplace discrimination, we discussed a handful of ways in which workplace discrimination can take place. Federal law protects employees in the workplace from discrimination based on factors such as age, race, sex and disability. As previously discussed, the Equal Employment Opportunity Commission (EEOC) enforces these laws and ensures that employees and applicants receive equal pay and opportunity for hiring, promotion and training.

This week we discuss the consequences of workplace discrimination for employers. We already know that discrimination can be punishable by law. However, do you know what the repercussions are for the company or employers accused of discrimination? The aftermath can range from tangible to intangible.

1. Lawsuits, Fines & Penalties – Workplace discrimination includes three types of tangible consequences for employers including fines, litigation costs and penalties imposed by federal or state agencies upon the investigation and discovery of discriminatory practices in the workplace. If your company is found guilty of discrimination and you don’t reach a conciliatory agreement with the EEOC, it may file a federal lawsuit against the company. If the EEOC charge is dismissed, the employee could still file a personal lawsuit against your company.

2. Bad Publicity & Company Reputation – Another tangible consequence of discrimination is the bad publicity your company may receive because of fines, settlements and penalties. This could hurt your business’ bottom line for years to come. Socially responsible consumers are less likely to support a company that has been found guilty of engaging in discriminatory employment practices. Not only that, but the accusations can cause serious damage to your company’s reputation. It wills also make it harder for your business to find qualified applicants for open positions.

3. Employee Morale – Discrimination also creates poor employee morale. If an employee feels benefits, rewards and promotions have little to do with their performance, they may stop doing their best work. Employee turnover will also increase, as employees will leave a company they feel is unfair to its workers.

These are three of the most common consequences for companies and employers who have been accused or convicted of workplace discrimination. For more information on discrimination in the workplace and how to identify it, please visit the Equal Employment Opportunity Commission at www.eeoc.gov.

About Josephine’s Professional Staffing

Founded in 1988, Josephine’s Professional Staffing has nearly 25 years of business success and is continuously committed to providing superior quality staffing solutions to companies in the Bay Area. We proactively and consistently search for avenues to provide staffing solutions in the field of administrative, accounting, healthcare, light industrial, technical and professional services while taking pride in each of our employees. Josephine’s Professional Staffing is a Certified Small Business Enterprise (SBE), Underutilized Disadvantaged Business Enterprise (UDBE), and Minority Woman-Owned Business Enterprise (MWOBE). We can be reached at jps@jps-inc.com or 408.943.0111 and are located at 2158 Ringwood Avenue, San Jose, CA 95131.

Photo Credit: jo-marshall (was Jo-h)