Banned Discrimination in the Workplace: What Federal Law Prohibits and How Employers Stay Compliant

“Banned discrimination” refers to employment decisions or workplace conduct that federal (and often state) discrimination laws prohibit—such as treating an employee differently because of race, sex, disability, age, or other protected characteristics. If you’re an HR professional or business owner searching for what counts as anti discrimination violations, which laws apply, and what practical compliance steps to take, this guide summarizes the core federal requirements and how to reduce risk.

For broader context on federal requirements beyond discrimination, see SwiftSDS’s employment legislation list.

What “banned discrimination” means under federal labor law

Under U.S. civil rights employment rules, “banned discrimination” generally includes:

Disparate treatment: intentional unequal treatment (e.g., refusing to hire someone because of race).
Harassment: unwelcome conduct based on a protected trait that creates a hostile work environment.
Disparate impact: a neutral policy that disproportionately harms a protected group and isn’t job-related/consistent with business necessity.
Retaliation: punishing someone for reporting discrimination, participating in an investigation, or requesting an accommodation.

These are common examples of illegal workplace practices and can arise in recruiting, pay, scheduling, discipline, promotions, layoffs, training, and termination.

For a plain-language overview of how equal employment obligations are supposed to work, read as it pertains to employment opportunity the eeo strives to.

Key federal discrimination laws employers must follow

Which law prohibits racial discrimination in the workplace?

Several federal laws do, but the most central are:

Title VII of the Civil Rights Act of 1964 (administered by the EEOC): prohibits discrimination based on race, color, religion, sex, and national origin for covered employers.
42 U.S.C. § 1981: prohibits race discrimination in contracts, including employment contracts (often used in race discrimination claims).
Executive Order 11246 (for many federal contractors): prohibits discrimination and requires affirmative action obligations in certain circumstances.

When someone asks “which law prohibits racial discrimination in the workplace,” Title VII is usually the primary answer for most private employers (with §1981 providing additional coverage).

Other major federal anti discrimination legislation in the workplace

Americans with Disabilities Act (ADA): prohibits disability discrimination and requires reasonable accommodations for qualified individuals with disabilities.
Age Discrimination in Employment Act (ADEA): prohibits discrimination against individuals age 40+.
Pregnancy Discrimination Act (PDA): treats pregnancy-related discrimination as sex discrimination under Title VII.
Genetic Information Nondiscrimination Act (GINA): prohibits discrimination based on genetic information and restricts genetic data collection.

If ADA compliance is part of your risk area (it often is), SwiftSDS has practical guidance on ada hr and recommended documentation in ada forms for employers.

What counts as discrimination at work (with examples)

To prevent violations of prohibiting discrimination rules, train managers and audit processes for common scenarios:

Hiring and recruitment

Screening out applicants due to assumptions about age, disability, pregnancy, or national origin.
Using biased job ads or referral networks that effectively exclude protected groups.
Asking improper medical questions before a conditional offer (ADA restrictions apply).

Action step: Standardize interview questions, document selection criteria, and ensure job requirements are job-related and consistent with business necessity.

Pay, promotions, and job assignments

Paying employees differently for substantially similar work based on protected status.
“Steering” workers into less desirable shifts/roles because of gender, race, or age.

Action step: Run periodic equity reviews of compensation and promotion outcomes; require written justification for out-of-band decisions.

Harassment and hostile work environment

Racial slurs, sexual comments, unwanted touching, mocking disability, or repeated “jokes” about protected traits.
Harassment by supervisors, coworkers, or even customers/vendors—employers can still be responsible if they knew/should have known and failed to act.

Action step: Maintain a clear anti-harassment policy, multiple reporting channels, and prompt investigations with documented outcomes.

Retaliation

Retaliation claims are among the most common. Examples include:

Cutting hours after an employee reports discrimination.
Changing assignments or performance ratings after an employee requests an ADA accommodation.

Action step: Require HR review before adverse actions involving employees who recently complained, requested accommodations, or participated in investigations.

Compliance checklist: practical steps to prevent discriminatory laws and practices

Employers reduce risk when they operationalize discrimination laws into repeatable processes.

1) Publish and enforce written policies

At minimum:

Equal Employment Opportunity (EEO) / non-discrimination policy
Anti-harassment policy
Anti-retaliation statement
Accommodation process (ADA; and religious accommodation under Title VII)

Action step: Train managers annually and track completion.

2) Create a consistent complaint intake and investigation process

Provide at least two reporting paths (e.g., manager + HR hotline/email).
Define investigation timelines, confidentiality expectations, and documentation standards.

Action step: Use an investigation checklist and store records securely with limited access.

3) Manage ADA accommodations correctly

The ADA generally requires an interactive process to identify reasonable accommodations unless it creates an undue hardship.

Action step: Use standardized forms and documentation so requests aren’t handled ad hoc—see ada forms for employers for what to include.

4) Audit “neutral” policies for disparate impact

Common risk areas:

Background checks
Attendance policies
Physical requirements not tied to job needs
Subjective performance reviews without calibration

Action step: Review outcomes by demographic group and tighten criteria where patterns emerge.

5) Confirm worker classification and leave decisions don’t create discrimination risk

Misclassification and leave administration can trigger unequal treatment patterns. If you use contractors or blended workforces, review leave eligibility and communications—SwiftSDS covers a common question in are contractors eligible for fmla.

Posting and notice obligations: don’t miss required workplace notices

Anti-discrimination compliance isn’t only policies and training—many jurisdictions require official notices to be displayed. While federal anti-discrimination posting requirements vary by employer type and agency rules, state fair employment notices are frequently mandatory and often enforced during audits.

Example (Massachusetts): employers may need to post MCAD notices such as Fair Employment in Massachusetts and, where applicable, Notice: Parental Leave in Massachusetts.

If you operate in California, your compliance picture may be broader than federal law alone—review Anti discrimination laws in california for state-specific protected categories, training requirements, and best practices.

For a quick refresher on employees’ baseline protections across federal law (beyond discrimination), see 5 rights of workers.

Penalties and business impact of banned discrimination

Violations of law for discrimination at work can lead to:

EEOC charges and investigations
Litigation costs, settlements, and attorneys’ fees
Reinstatement, back pay/front pay, compensatory and punitive damages (where available)
Negative publicity and retention harm
Loss of government contracts (for covered contractors)

Action step: Treat discrimination prevention like any other compliance program: documented controls, periodic audits, and executive accountability.

FAQ: Banned discrimination and workplace compliance

What is the difference between “unfair” treatment and illegal discrimination?

Unfair treatment becomes illegal when it is tied to a protected characteristic (race, sex, disability, age 40+, etc.) or when it is retaliation for protected activity (reporting discrimination, requesting accommodations). Not every poor management decision violates anti discrimination legislation in the workplace, but many do when connected to protected status.

Which law prohibits racial discrimination in the workplace for most employers?

Title VII of the Civil Rights Act of 1964 is the primary federal law prohibiting race discrimination for covered employers. 42 U.S.C. § 1981 can also apply to race discrimination in employment contracts and may provide additional avenues for claims.

Do small businesses have to follow federal discrimination laws?

Coverage depends on the law (often tied to employee count), but many small businesses are still covered by at least some federal rules, and state laws can apply at lower thresholds. It’s best to confirm obligations for each jurisdiction; for example, SwiftSDS’s state guidance can help, including Anti discrimination laws in california where applicable.

SwiftSDS helps employers translate federal requirements into simple, auditable compliance steps. For more federal labor law topics and related postings, explore the employment legislation list.