An Equal Opportunity Employer (EEO) promotes fairness and prohibits discrimination in the workplace based on protected characteristics. Compliance with EEOC regulations is crucial for most US companies. Being an EEO employer fosters diversity, bringing unique perspectives and capabilities, enhancing business success.
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Equal Employment Opportunity (EEO) refers to fair, unbiased treatment in the workplace. Employers are prohibited from discriminating against existing or potential employees based on protected characteristics, including:
In the US, companies need to comply with the regulations of the Equal Employment Opportunity Commission (EEOC), a regulatory body that enforces a group of federal EEO laws. These regulations apply in every work situation; for example when employers hire, terminate, compensate, promote and train employees. It’s also illegal to discriminate against people who have complained about discrimination.
Most companies with 15 employees or more are legally obliged to follow the equal employment opportunity laws. These include:
Also, the Equal Employment Opportunity Act of 1972 gives the EEOC the authority to sue in federal court cases of unlawful, discriminatory employment practices.
For more details on what is an equal opportunity employer, read our EEO definition and learn the obligations and the exceptions that might impact your business.
Navigate local and international regulation – including GDPR and EEOC/OFCCP – with automated tools and reports that take the effort out of compliance, wherever you’re hiring.
Equal opportunity employment has become a crucial part of hiring practices and workplace culture over the past few decades But what exactly does it mean when a company calls itself an “equal opportunity employer”?
In this comprehensive guide, we’ll cover everything you need to know about equal employment opportunity, including:
- The definition of an equal opportunity employer
- Federal EEO laws and protections
- Benefits of equal opportunity hiring
- Tips for building an equal opportunity workplace
- Signs of potential discrimination
- Handling EEOC charges
Let’s get started!
What is an Equal Opportunity Employer?
An equal opportunity employer (EEO employer) is a company that values diversity and inclusivity. They provide equal employment opportunities to all applicants and employees regardless of race, color, religion, sex, sexual orientation, gender identity, national origin, disability status, or protected veteran status.
More specifically, an equal opportunity workplace ensures:
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Fair hiring practices – Recruiting, hiring, and promoting are based on qualifications, not demographics. Job ads clearly state “EEO employer”.
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Inclusive work environment – All employees are treated fairly regarding training, pay, benefits, assignments, discipline, and termination.
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Diversity at all levels – There is diversity in leadership and staff positions. Goals may be set for diverse recruitment and promotion.
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Accommodations provided – Disability accommodations are granted to qualified employees and applicants if needed.
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Harassment prohibited – There are clear policies against harassment and discrimination based on protected classes.
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EEO compliance – Federal equal opportunity laws regarding hiring and employment are followed.
Federal Laws on Equal Employment
There are several key federal laws that require equal opportunity:
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Title VII of Civil Rights Act – Prohibits employment discrimination based on race, color, religion, sex, and national origin. Applies to employers with 15+ employees.
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Equal Pay Act – Requires men and women to be given equal pay for equal work in the same workplace. Applies to most employers.
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Age Discrimination in Employment Act – Prohibits age discrimination against applicants and employees 40 years or older. Applies to employers with 20+ employees.
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Title I of ADA – Prohibits disability discrimination and requires reasonable accommodations be provided to qualified disabled applicants and employees. Applies to employers with 15+ employees.
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Sections 501 and 505 of Rehabilitation Act – Prohibits disability discrimination and requires affirmative action to employ disabled individuals. Applies to federal contractors and subcontractors.
Several other laws offer additional protections related to discrimination and equal opportunity. Employers must comply with all EEO laws applicable to their workplace.
Benefits of Being an Equal Opportunity Employer
While equal opportunity hiring is required by law, it offers many additional benefits to companies:
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Increased diversity leads to more innovation, better decision making, and new perspectives.
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Access to a larger talent pool allows hiring of the most qualified candidates.
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Employee morale and retention improves when all employees feel valued and included.
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Legal compliance protects the company reputation and avoids costly litigation.
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EEOC guidance is available to help companies meet requirements.
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Government contractors may be eligible for financial incentives for exemplary EEO practices.
So being an equal opportunity employer is not just about staying out of legal trouble, it’s about building a thriving diverse workforce.
Tips for Ensuring Equal Employment Opportunities
Here are some best practices employers can follow:
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Review hiring practices and policies for potential bias or barriers.
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Provide equal opportunity training for recruiters and managers.
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Use inclusive job postings and language in employer branding materials.
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Commit to interviewing diverse slates of qualified candidates.
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Audit pay equity across gender, race, and other factors.
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Survey employees to uncover unreported harassment or discrimination issues.
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Train all employees regularly on diversity, inclusion, and reporting concerns.
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Track applicant demographics, hiring, promotions, and terminations by race, gender, etc. to identify problem areas.
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Accommodate qualified individuals with disabilities.
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Create employee resource groups to support underrepresented groups.
Signs of Potential Discrimination
While instances of obvious discrimination are rare today, some indicators of uneven equal employment opportunity that may require investigation include:
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Job postings requiring a certain gender, race, age range, etc.
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Interviews only offered to applicants of a certain demographic.
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One gender or race experiencing higher termination rates.
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Salary gaps correlated to race or gender groups performing similar jobs.
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Lack of diversity at certain levels such as leadership roles or technical teams.
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Complaints of harassment from employees of underrepresented groups.
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Failure to provide reasonable accommodations for a disability or religious belief.
Handling EEOC Discrimination Charges
Employees or applicants who believe they have experienced discrimination may file a charge with the Equal Employment Opportunity Commission (EEOC), which enforces federal EEO laws.
If your company receives notice of an EEOC charge, here are tips for responding:
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Take all charges seriously and immediately consult your legal counsel.
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Direct managers and employees to fully comply with EEOC information requests.
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Submit a written position statement to the EEOC addressing the employee’s specific claims.
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Negotiate a settlement if discrimination occurred; litigating should be a last resort.
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Use the charge as opportunity to review your EEO practices and correct any issues.
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Document your EEO compliance efforts in case of future charges.
The Bottom Line
Equal employment opportunity is not just required by federal law, it’s is crucial for building a diverse, inclusive workforce positioned for success. While discrimination issues may arise, companies should regularly review their hiring and employment practices to ensure all qualified individuals have an equal chance to join and thrive in the workplace. With some effort, any organization can become an employer of choice for job seekers of all backgrounds.
Filing an EEO-1 report
One of the regulations you need to comply with once your teams grow – and, at the same time, one of the biggest pain points HR departments in the US have to face – is the dreaded EEO-1 report.
The EEOC has made it mandatory for companies that meet certain criteria (mostly related to the number of employees and the company’s operations) to fill out a compliance survey with employment data categorized by race/ethnicity, gender and job category. This is the EEO-1 report that must be submitted annually. For 2019, the deadline has been extended to May 31. Note that additional hour and pay data included in the EEO-1 Component 2 will be required by September 30, 2019.
Filing an EEO-1 report can be a headache for HR teams and employers because they need to accurately collect and report on employment data. Any mistakes could result in fines or even more severe legal troubles (e.g. imprisonment). Before you start filling out your report and before the deadline expires, check our detailed guide to learn whether you need to submit an EEO-1 report and how to do it. It might also be useful to take a look at this primer on EEO categories to understand the different job classifications.
While the purpose of an equal opportunity act might be clear, the requirements that you need to follow and the action plans that you need to set up may not always be so. A misinterpretation, an inaccuracy or a small deviation from the regular procedures could leave you with an EEO complaint. Plus, the way you’d handle this complaint is crucial because it could turn into a lawsuit. To help you avoid legal consequences, we explored the six most common mistakes that companies make when facing EEOC charges – and what you should do instead.
Because it’s difficult to keep track of all employment information as your teams scale, we built tools inside Workable to help you with this process. By enabling the ‘EEO/OFCCP Survey and Reporting’ feature, you can be confident you capture all important data consistently, including disqualification reasons. You will also have a detailed compliance (EEO) report at hand.
Writing an EEO statement
Besides the EEO-1 report, EEOC makes it mandatory for some companies to include an equal opportunity employer statement in their job ads. This can be as simple as one sentence where you declare that you’re an equal opportunity employer and you follow non-discriminatory practices.
Even if you’re not obliged by law, it’s still a good idea to put an informal EEO statement in your job ads and careers page that will prompt people from underrepresented groups to apply and will speak of your values. This is what job seekers see when they visit Workable’s careers page:
However, an equal opportunity employment statement is not a guarantee of an unbiased work environment. This is something that should be reflected in every process you have before, during and after you hire employees; in other words, if you’re talking the talk, you need to walk the walk.
HR Basics: Equal Employment Opportunity
What is an equal opportunity employer?
An equal opportunity employer is a company that practices the principle of equal chance of recruitment and opportunity to work to all applicants, without discrimination based on race, color, religion, sex, national origin, age, disability, or other characteristics that are unrelated to their ability to perform the job.
What is the Equal Employment Opportunity Commission (EEOC)?
The U.S. Equal Employment Opportunity Commission (EEOC) is the agency responsible for enforcing federal laws regarding discrimination or harassment against a job applicant or an employee in the United States.
How does the Equal Employment Opportunity Commission protect employees from discrimination?
The U.S. Equal Employment Opportunity Commission enforces Federal laws prohibiting employment discrimination. These laws protect employees and job applicants against employment discrimination when it involves:
What is an equal-opportunity employer?
An equal-opportunity employer is an organization that pledges to not discriminate against employees based on the following demographics: Anti-discrimination laws exist at the local, state and federal level.
