Equal Employment Opportunity
Equal employment opportunity (EEO) laws prohibit employment discrimination based on race, color, religion, sex, pregnancy, age, religion, disability, and national origin; in the United States, these laws apply to employers with fifteen or more employees. The concept means that all employees shall have an “equal opportunity” based hypothetically on their skills and performance to obtain employment and advance on the job once they have obtained such employment. In practice, though, the concept is much more complicated. In most family businesses (of which there are many), for example, family relationships/nepotism tend to play a major role in employment decisions, creating a high degree of “unequal employment opportunity” for non-family members. Moreover, the concept of “affirmative action,” discussed below, involves giving preferential treatment to members of certain groups such as veterans, those with disabilities, etc.—again something the opposite of providing “equal” opportunity to all. Our analysis, however, basically tracks the legal definition of “equal employment opportunity” in most of the developed world, which is essentially that employers must not discriminate (i.e., they should provide equal opportunity) in employment on the basis of race/color, sex, religion, age, etc.