SneedLangHerrold » news/works » employment law newsletters

SMALL BUSINESS

SMALL EMPLOYERS NOW SUBJECT TO DISCRIMINATION CLAIMS

Are you a small employer with less than fifteen (15) employees? Do you think the anti-discrimination laws do not apply to you? THINK AGAIN! The Oklahoma Supreme Court recently held in Smith v. Pioneer Masonry, Inc., 2009 OK 82, that the Oklahoma Anti-Discrimination Act now applies to employers with less than fifteen (15) employees.

Oklahoma is an at-will employment state. That means an employer can terminate an employee for a good reason, bad reason or no reason at all as long as it does not violate federal or state anti-discrimination statutes or Oklahoma’s public policy. In the past, the public policy exception has been very narrowly construed. However, the Smith case has vastly expanded what constitutes a violation of Oklahoma’s public policy.

The Oklahoma Anti-Discrimination Act (the “OADA”) prohibits discrimination based on race, color, religion, sex, national origin, age or handicap, although until recently it did not allow for a private law suit except in cases of handicap discrimination. Okla. Stat. tit. 25, §§ 1101 et. seq. Under the OADA, an “employer” is defined as follows:

“Employer” means a person who has fifteen or more employees for each working day in each of twenty (20) or more calendar weeks in the current or preceding calendar year. . ..

Okla. Stat. tit. 25, § 1301(1). However, in Smith, the Oklahoma Supreme Court held that the primary purpose of the OADA is to prevent wrongful discrimination in employment. Thus, the purpose of this statutes provides a declaration of Oklahoma’s public policy on this issue, i.e., it is against the public policy of Oklahoma to allow discrimination based on race, color, religion, sex, national origin, age or handicap.

As a result of Smith, the Oklahoma Supreme Court has now held that the fifteen-employee threshold is a thing of the past, and smaller employers are subject to discrimination lawsuits.

What does this mean for Oklahoma employers? If you are a smaller employer, you are now subject to a whole new category of employee law suits. As with larger employers, you can be sued by your employees if they feel they have been discriminated against based upon race, color, religion, sex, national origin, age or handicap. The prerequisite administrative process, formerly requiring an Equal Employment Opportunity Commission or Oklahoma Human Rights Commission charge prior to a formal lawsuit, may be a thing of the past. It is important that you immediately implement anti-discrimination policies which are distributed to all employees and which provide them with a way to make complaints in confidence without fear of retaliation. You should make clear to your employees that discrimination will not be tolerated in the workplace. It may also be a good idea to provide some training on these laws to your supervisors and managers so that they understand the law and how to handle complaints of discrimination. Having a good policy in place, investigating and taking prompt remedial action upon receiving a complaint may insulate your company from liability should a claim arise.

If you have any questions about how these laws apply to you or what you need to do to comply, contact your legal counsel.

Co-Authored by
Monica L. Maple and Mark A. Waller