How To Be An Equal Opportunity Employer

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You may have heard the term equal opportunity employer when applying for jobs, but what is it exactly? According to federal regulations, an equal opportunity employer is defined as “an employer that pledges to not discriminate against employees based on race, color, religion, sex, nationality, age, disability, or genetic information.”

Equal opportunity is protected in the United States under the U.S. Equal Employment Opportunity Commission, which was established in the Civil Rights Act of 1964 to protect employees in the United States from discrimination. As time has progressed, this act has moved to prohibit discrimination based on sexual orientation and transgender status as well.

If you own and operate a business within the United States and have fifteen or more employees, you are legally obliged to follow equal opportunity laws. The Equal Employment Opportunity Commission (EEOC) is a regulatory body that enforces these laws, which apply in every work situation, including hiring, termination, compensation, promotion, and training.

Key Takeaways:

An equal opportunity employer (EEO) means you’re providing employees with the same chances or “equal opportunity” so that employers cannot use certain characteristics as reasons to hire or reject candidates
Not all employers are covered by equal opportunity laws as some businesses do not meet the specific criteria.
If you are an American citizen employed by an organization in the United States but work overseas, you will also be covered by the same protections as workers in the U.S.
Most companies with 15 or more employees are legally required to follow EEO laws.
EEO laws protect employees from being discriminated against because of their:
- Race
- Color
- National origin/ethnicity
- Religion
- Age
- Sex/Gender
- Sexual orientation
- Medical history
- Genetic information
- Disability

What Is an Equal Opportunity Employer?

As the name suggests, an equal opportunity employer (EEO) means you’re providing employees with the same chances or “equal opportunity” so that employers cannot use certain

¹_{While the EEOC does not explicitly define the term, this definition is based on EEOC guidelines for recognizing types of discrimination and guidelines for determining which businesses are eligible for coverage.}

characteristics as reasons to hire or reject candidates. Alternatively, this means they are unable to discriminate against specific characteristics, including;

Race. An employer can not hire or reject candidates based on an individual’s skin color or appearance.
Ethnicity. An employer can not hire or reject candidates based on their nationalities or national origins.
Religion. Candidate and employee religions are not reasons to hire or reject them from a potential job. The workplace is often also required to make accommodations for employees, if necessary.
Age. An employer can not use age as a reason to hire or reject a candidate.
Sex/Gender/Sexual Orientation. An employer can not use sex or gender against any candidate. Similarly, they are unable to hire or reject candidates due to their sexual orientation.
Physical or mental disability. So long as the job responsibilities do not endanger other staff or potential employees, employers can not use physical or mental disabilities as reasoning to hire or reject candidates.

Of course, many of these things depend on the job at hand. For example, if there is a job that requires heavy lifting or mobility, there may be constraints on individuals with disabilities. EEO doesn’t guarantee underrepresented groups will get hired; it is primarily to ensure nobody faces rejection or difficulties because they are part of a specific group.

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Who Is Covered by Equal Opportunity?

Not all employers are covered by equal opportunity laws. An employer must have a specific number of employees to be covered by the laws, and that number can vary depending on the type of employer. If the employer is a private company, a state or local government agency, a federal agency, an employment agency, or a union, these requirements can vary.

If an employer meets the number of employees’ requirements, all of their employees are protected by anti-discrimination laws so long as they are an employee, a job applicant, a former employee, or a participant in an internship, training, or apprenticeship program with the company.

Additionally, if you are an American citizen employed by an organization in the United States but work overseas, you will also be covered by the same protections as workers in the U.S. However, there are some individuals who are not covered, including independent contractors or freelance individuals.

There are a variety of additional exceptions that are better explained in the table below:

Employer	Subject to EEOC General Provisions	Age Discrimination (Age 40 or older)	Equal Pay Act
Private business	More than 14 employees for at least 20 calendar weeks this year or last year	More than 20 employees	Covered
State and Local Government Agencies	More than 14 employees for at least 20 calendar weeks this year or last year	Any number of employees	Covered
Federal Agencies	All federal agencies are covered	All federal agencies are covered	Covered
Employment Agencies	Any number of employees or referrals	Any number of employees or referrals	Covered
Labor Unions and Joint Apprenticeship Committees	More than 14 members for at least 20 calendar weeks this year or last year	More than 24 members or if it operates a hiring hall	Covered

EEO-1 Reports

As an organization, you’ll be required to follow a number of laws, rules, and regulations, the EEO-1 report, being one of them. The EEOC mandates that the companies that meet their specific criteria must deliver a compliance survey with employment data categorized by race, gender, and job category.

This report is expected annually. Although this may seem like a headache for human resources teams and employers, it’s important to do this carefully as any mistakes may result in heavy files or legal trouble. Be sure you or your human resources department understands different job classifications before filling out this report.

Being an equal opportunity employer isn’t a socially conscious step that a company can just decide to take: It’s a legal requirement. Almost every company with 15 or more employees is required to comply with equal opportunity employment laws, which then will make them an equal opportunity employer.

Here are the steps you and your company need to take in order to be a compliant equal opportunity employer:

Understand the laws. To ensure employers can’t discriminate against employees, the Equal Employment Opportunity Commission (EEOC) enforces the many equal employment opportunity laws the U.S. has. These include:
- The Equal Pay Act of 1963
- Title VII of the Civil Rights Act of 1964
- The Age Discrimination in Employment Act of 1967
- Title I of the Americans with Disabilities Act of 1990
- The Genetic Information Nondiscrimination Act of 2008
These laws protect employers from discriminating against people because of their:
- Race
- Color
- National origin/ethnicity
- Religion
- Age
- Sex/Gender
- Sexual orientation
- Medical history
- Genetic information
- Physical or mental disabilities
Many people think of these laws as only applying to hiring and firing, but they apply to every work situation, including:
- Hiring
- Termination
- Compensation
- Promotion
- Training
There are many more ins and outs to equal opportunity employment laws, and understanding these regulations is the first step to becoming an equal opportunity employer.
Understand how far these laws extend. It isn’t enough to just avoid discriminating against your current and potential employees: These laws apply to their spouses and families as well.

So, for example, you can’t choose not to hire someone because of their spouse’s or children’s race, disabilities, age, etc.

In addition, these laws actually say that sexual harassment is a form of discrimination. This means that not only can you not allow sexual harassment within your organization, but you also can’t discriminate against victims of sexual harassment, domestic violence, sexual assault, or stalking.

Again, this is just the tip of the iceberg of how these laws are applied, so it’s a good idea to have someone who knows what they’re talking about, making sure that your company is fully compliant.
Post notices and file reports. The law requires employers to put notices explaining the EEO rights in high-traffic areas of their facilities. If you don’t do this, you could be fined.

In addition, many companies have to file an EEO-1 form every year. Even if your company isn’t required to do this, however, it’s a good practice to get in the habit of it since it shows you how exactly your company is doing as far as nondiscrimination goes.

These reports require you to list the racial, gender, and ethnic makeup of your company, which can quickly reveal areas where biases need to be checked and more effort needs to go into increasing diversity.
Make your facilities accessible. When it comes to people with disabilities, it isn’t enough to just hire them – you have to make sure they can get around your facilities safely and efficiently as well.

You need to consider applicants with disabilities in the same way you do applicants without disabilities, even if you don’t have accommodations in place yet. To make this easier and to avoid even the slightest bias in the decision-making process, it’s wise to put these accessibility features in place before you need them.

You may still have candidates who need accommodations in addition to the ones you already have, but at least having some in place will make this process easier.
Address biases in attitudes and policies. Prejudice and bias can sneak into even the most generous and welcoming people, so you need to be on guard against them in your company.

Regularly check your company records and policies for discriminatory practices you may have missed, such as female, Black, or Hispanic workers getting paid less than their male or white counterparts being passed up for promotions for no apparent reason.

In addition, company dress codes and time off policies can unintentionally discriminate against employees’ religious and cultural practices by not accommodating traditional holidays or clothing.
Consider creating an affirmative action program. This usually isn’t a legal requirement (except for federal contractors), but implementing an affirmative action program can help you proactively keep your company compliant with EEO laws.

Affirmative action programs are plans for recruiting and hiring minority employees so that these groups make up a certain percentage of your total number of employees. Just make sure that the percentage goals you put in your affirmative action plan are within EEO guidelines.

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How to Comply as an Equal Opportunity Employer

Being an equal opportunity employer might seem clear; however, the regulations and requirements can sometimes become overwhelming. Misinterpretations or inaccuracies could result in EEOC complaints, which must also be handled with care, so it doesn’t result in a lawsuit.

If you find yourself with an EEOC complaint, be sure you handle it timely. Some of the biggest mistakes employers make when receiving a complaint like this are ignoring it completely, not being proactive, being inconsistent, not learning their lesson, or retaliating against the employee.

The Importance of Equal Opportunity Employers

Equality in the workplace is incredibly significant and goes beyond federal rules and regulations. Providing equal opportunity is the right thing to do for your employees and gives the company and its employees the opportunity to explore diversity and thrive because of it.

Diverse groups are statistically more successful because they provide alternative perspectives which reflect their individual societies and markets more accurately. Employers should enjoy this potential in order to accomplish better things and reach a wider audience while trying new things.

By removing biases from the hiring process and refraining from asking illegal interview questions like age, race, and sexual orientation, teams will have better experiences at work. Promoting diversity helps with acceptance and respect both in the workplace and outside of it. The laws are just in place to ensure companies comply.

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