How changes in employment law during the Obama administration can affect your company

What other changes to employment law could affect how employers do business?

The recently enacted Genetic Information Nondiscrimination Act (GINA) covers employees’ genetic information and family histories. This act has broadened the definition beyond just collecting what was historically considered ‘genetic’ data. For example, if you say that your mother died of breast cancer in a request for bereavement leave, under this new law, that is now considered ‘genetic information.’

Under this law, employers cannot discriminate against an employee because it believes he or she has a genetic predisposition to a medical condition that could have a negative financial impact on the company. It is also illegal to retaliate against those who complain that this act has been violated.

Last, if an employer receives such information as a result of a request for leave or an accommodation under the FMLA or ADA, that information must be segregated from the employee’s personnel file and kept in a separate, confidential medical file in a locked drawer.

We expect this to be a statute that employers are not paying much attention to, but which the EEOC will be actively enforcing.

What recent changes have been brewing with respect to employment background checks?

When employers do background checks they may refuse to hire an applicant who shows a felony conviction. Such policies have been held lawful, as long as the policy is applied uniformly.

The EEOC has recently shifted position on this issue, claiming that because minorities have higher conviction rates, such policies may be used as pretext for racial discrimination. Under this new EEOC regime, if an employer wants to do a pre-employment background check and decides against hiring an applicant based on the results, the employer must show that the crime is job-related. For instance, if the position deals with handling money and the applicant has an embezzlement conviction, that is considered ‘job related.’ But if he has a DUI conviction and the position isn’t driving related, this should not be used as a reason not to hire.

Ultimately, it is the employer’s burden to prove the decision not to hire had nothing to do with the fact that the candidate is a minority. And if you can’t prove that the felony conviction was relevant to the job, the EEOC will assume your excuse is just a pretext for racial discrimination.

So how can employers protect themselves?

With the increase in enforcement and more people getting fired, there is a greater likelihood you will find yourself facing an EEOC charge, a lawsuit, or a charge before another administrative agency. To decrease your risk, document everything and make sure you’re treating people fairly across the board, across gender, race, age, etc. And when you do face an administrative agency, take the process seriously. At the end of the day, the best thing you can do to protect your business is to keep the number of a good employment lawyer on speed dial, preferably someone who is keeping abreast of these ever-changing laws and expanding agendas of the administrative agencies tasked with enforcing these laws.

Erica Mason is an associate at Baker, Donelson, Bearman, Caldwell & Berkowitz, PC. Reach her at [email protected] or (678) 406-8718.