For many years, the federal and state governments have had legislation with the stated goal of preventing employment discrimination. They created departments to investigate and prosecute allegations, which can be damaging – even if they are determined to be false. Regulations against discrimination are complex. Many are not intuitive. Employers should comply carefully with federal and state law. Whether these laws achieve their stated goals or reduce discrimination requires an examination of employment data and other factors over time. Economics has contributed much scholarship to understanding discrimination. This column does not examine the effectiveness of these laws or economic issues. Rather, it discusses litigation risks and suggests precautions that employers can take to mitigate them. |
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