More States Ban Hiring Discrimination Against the Unemployed, Feds May Follow

Discrimination against the long-term unemployed has been a concern for both federal and state lawmakers over the past few years. Today the long-term unemployed make up nearly 36 percent of the unemployed total, as compared with 10 to 20 percent historically. While there is currently no federal law prohibiting discrimination against the unemployed, some states have passed legislation. The earliest versions simply banned job postings that essentially stated that unemployed need not apply.

More recent efforts go further. The most expansive measure was enacted in New York City in 2013. Violations carry penalties of up to $125,000 per violation, and up to $250,000 per willful violation. Additionally, unlike most other laws prohibiting discrimination against the unemployed, the New York City version permits individuals to file a complaint with the City Commission on Human Rights or file an action in court.

Employers should remove statements in their job postings or applications that refer to the applicant’s job status or indicate a preference for the currently employed. After removing overtly discriminatory practices, employers should work with human resources departments to eradicate unconscious bias against the unemployed.

Employers should also determine whether there are grants and government funds available for hiring the long-term unemployed. New York, for example, has them, and Michigan has received funding from state lawmakers to create subsidized employment opportunities for businesses in distressed communities.