Due to the strategies that were established to keep employment levels below the threshold levels for coverage by federal employment laws, many employers have resorted to keeping organizations smaller. For example, the threshold levels are 20 for the Age Discrimination Act and 15 for the Civil Rights Act which means these organizations are not covered by the certain EEOC laws (Greer, 2001, p. 119). The positive consequences of such strategies include small companies claim that the smallness of their organization benefits them by providing them with more flexibility, closer relationships with customers, and improved decision making processes. In addition, Greer provided an example of the effectiveness of small companies: “an example of efficiencies of small is provided by findings that the highest sales per employee ratios are found in companies having less than 20 employees” (Greer, 2001, p. 118) .
Greer also states that some entrepreneurs may view federal laws as threats. Therefore, employers may prefer smaller organization to avoid having to deal with discrimination and legal lawsuits. Organizations that are required to hire a certain percentage of employees because of the laws set in place, may feel forced to create a diverse working environment, and critics suggest that this could create a hostile environment (Chapman & Shaffer, 1975). Besides, the Civil Rights Act of 1964 specifies the general requirements for equal employment opportunity and led to the establishment of the Equal Employment Act of 1972 and the Equal Employment Opportunity Commission (EEOC) (Greer, 2001). The EEOC is responsible for carrying out federal laws that makes discriminating against job candidates based on their age, race, color, religion, sex (pregnancy), national origin, and disability, illegal. Conclusively, discriminating against persons who file a case against discrimination is also illegal (U.S. Equal Employment Opportunity Commission, 2013).
Moreover, employers are aware that they must have a minimum of number employees in order for those employees to be covered by EEOC laws (U.S. Equal Employment Opportunity Commission, 2013). Employers are also required to hire the groups that represent less than the 80% of the organization based on their race, sex, or ethnicity if they have the minimum number of employees working for them. So, the negative consequences of such strategies include protected groups are not covered by the EEOC law, which makes discrimination in the workplace easier. These laws were put in place to outlaw hiring practices that are used to discriminate against individuals of a protected group in recruiting, hiring, compensating, testing, training, and providing benefits. Employers are to use the selection tools that have the least adverse impact (Moore, 2013).
2. As a result of exclusion of small businesses from coverage by some federal laws, the employees of such businesses have fewer rights than employees of larger companies....