Understanding Laws on Favoritism at Work: Rights and Regulations

Workplace favoritism: what is it?

Workplace favoritism refers to the phenomenon of an employer or boss showing preferential treatment to certain employees over others. This bias can manifest in a number of ways, usually benefitting the favored employee(s), and can create a host of problems for a company as a whole if it begins to affect morale and productivity.
Favoritism in the workplace could be as simple as the boss unintentionally doing more for their favorite employees than they do for the others—to the point where other employees feel unfairly discriminated against. A business in which favoritism is present could result in the favored employee receiving perks such as a more flexible schedule , less rigid work conditions or being given special consideration in work assignments and promotions.
Favoritism in the workplace and favoritism in the workplace discrimination are not technically illegal under federal law (although they can be illegal under state and local laws if they violate anti-discrimination laws). Because favoritism is not deemed to be inherently a form of discrimination, the law does not extend protection to employees who feel they are on the short end of the stick when it comes to favoritism.
Favoritism is also not quite the same as "nepotism," which specifically refers to favoring/favoritism toward relatives. This type of favoritism may also be illegal in the context of public employment. The distinction is important because favoritism can be applied toward all kinds of employees, from family to friends to those with whom a superior has formed a bond over time.

Legal consequences of favoritism

Favoritism can present legal challenges for employers that are meant to protect applicants and employees from discriminatory treatment. Although favoritism is not itself an unlawful employment practice, it can create either a perceived or real burden on classes of employees. If an employee favors a protected group, the other employees may claim a perception or reality of discrimination against the protected group. Similarly, if the favoritism treats a protected group or class worse than other employees, the he or she may have a viable claim for harassment or failure to protect from a hostile work environment. Favoritism, if imposing an adverse employment action or treating a different class of employees unfavorably, may be construed as retaliation. Employer liabilities come into play based on the potential for favoritism to result in illegal discrimination, harassment, or retaliation.

Laws that prohibit favoritism

Beneath the veneer of camaraderie, favoritism in the workplace can harbor toxic repercussions. From creating a hostile work environment to spawning discrimination and harassment lawsuits, favoritism can have far-reaching and costly consequences for employers. That’s why it’s important to familiarize yourself with the basic laws that address this phenomenon.
-The Civil Rights Act
All employers are required by federal law to manage their workplaces without regard to sex, race, color, religion, or national origin. This law is enforced by the Equal Employment Opportunity Commission (EEOC). Although most favoritism does not break this law, where favoritism has the effect of allowing a supervisor to manipulate policies, procedures, or resources to benefit certain employees and harm others, favoritism may violate the law. For example, favoritism in hiring or promotion that benefits one sex or race over another, such as giving preference to the male child of a manager, could be considered discrimination. However, favoritism alone generally does not interfere with the terms and conditions of employment, and courts have been very reluctant to find a Title VII violation where the only claim is favoritism at the hands of a supervisor.
-The Fair Labor Standards Act (FLSA)
The FLSA offers another legal recourse against favoritism. The FLSA applies to all private sector employers who are engaged in interstate commerce. Affected private sector employers include hospitals, schools, retail operations, restaurants, factories, construction sites, and service establishments. Under the FLSA, it is illegal for employers to discriminate between employees based on sex by paying a wage to employees of one sex at a rate which is less than the rate paid to employees of another sex for equal work on jobs requiring equal skill, effort, and responsibility and performed under similar working conditions. Discrimination and favoritism can be difficult to distinguish when considering whether unequal treatment results in unequal pay. Courts will look closely at the circumstances to determine whether favoritism played a role in an employee’s pay.
-State Laws
Like federal laws, individual state laws vary and often contain anti-favoritism laws for public workplaces only. Some states have held that favoritism in secular workplaces violates Establishment and Equal Protection Clauses of the state constitution. For example, in 1991, a Florida court found that favoritism in the system of hiring and promoting law clerks and interns for state appellate courts is unconstitutional. In so holding, the court noted that the favoritism – preferential rewards bestowed by a government official or officer on his or her relatives, friends, or supporters without regard for their qualifications and fitness – is in essence an abuse of power by the selectmen and arbitrary action amounting to discrimination. There are no sexual harassment implications if it can be shown that the favored employee received the same or similar treatment as other employees whether of the same or different gender.

Your rights and protections from favoritism

Employees who suspect that they have been treated with favoritism or preferential treatment are not without rights and protections. The first step an employee should make in combating workplace favoritism is to carefully document the receipts of unfair treatment. Documenting specific acts of favoritism, including details such as the persons involved, dates, times, and what happened, can be used later to create a pattern of behavior.
Employees have the right to seek clarification in the workplace about why they may have been treated differently than other employees. Specifically addressing these concerns with management can provide needed answers while also creating a paper trail regarding issues that may be necessary to use as evidence.
Sexual harassment and "quid pro quo" sexual harassment may have occurred if favoritism is based on sexual relationships. Employees who suspect that a supervisor is giving preferential treatment to certain employees due to a sexual relationship may have grounds to file a complaint with the Equal Employment Opportunity Commission.
Although favoritism is not necessarily unlawful or illegal, it may still create a hostile or intimidating work environment. Claims of hostile work environment can be filed with the commission and may be investigated. A successful claim or lawsuit against favoritism can result in compensatory damages or monetary compensation to the employee for lost wages and benefits or damages for emotional distress, pain and suffering, inconvenience, loss of enjoyment of life, and other negative effects that resulted from the discrimination or harassment.
Employees who are victims of workplace favoritism may wish to seek the assistance of an employment attorney. An employment attorney may be needed to determine the most effective and beneficial course of action. Attorneys are also generally valuable for making sure that claims are correctly and legally presented. They are often needed for employee assistance in calculating damages and negotiating settlements.
Employees who suspect favoritism or discriminatory treatment may wish to consult with an attorney to determine whether they have been victims of harassment, abuse, or discrimination.

How to prevent workplace favoritism

Employers can take proactive steps to prevent favoritism in the workplace by fostering a culture where teamwork and meritocracy are prioritized over personal relationships and implicit biases. Implementing structured policies and training programs often proves to be effective as well.
For example, an employer should clearly state its anti-favoritism policy in its handbook and distribute that policy to all employees to ensure they understand the company’s position on favoritism. Training supervisors and managers regularly on avoiding favoritism and best practices for evaluating employees is also important . Regularly conducting performance reviews and giving employees constructive feedback is vital as it can help employees objectively evaluate their performance as well as their peers’ performance. Offering training sessions to managers on how to recognize and counter their own biases can also be helpful.
It is also very important to actively promote and encourage employees to freely give feedback on their managers’ performance and that of their peers. Multiple anonymous feedback sources and channels can be effective at promoting employee feedback. Incorporating those sources of feedback in employment assessments and promotion or compensation decisions can help employers reinforce its no favoritism policy.

How to deal with favoritism complaints

The first step in addressing a complaint of favoritism should be to determine whether a complaint has been made with regard to favoritism. Often, an employee may bring up other concerns such as discrimination to get to the root of their complaint. Even if an employee doesn’t believe they have a complaint, employers should ask them the following questions:
Once a complaint of favoritism has been brought to your attention, you should immediately begin an investigation. First, notify any potentially biased supervisors of the complaint, instructing them not to have any communication with the complainant in order to protect them from possible retaliation and to prevent the manipulation of evidence or witnesses. The accused manager should be notified unless there is a high calculated risk that he or she will destroy evidence or retaliate against the complainant. Hands-off supervisory experience is necessary for investigators of favoritism in order to assure the parties involved that decisions made by the investigator are based on fair treatment and sound logic. When investigating a complaint of favoritism, remember to ask whether favoritism is the theme of the complaint. A favor could be either the granting of something that the person wanted or the withholding of something that was not wanted. Record-keeping is one of the most important aspects of an investigation. You should keep records of:
An investigation of favor should begin by determining whether the complainant was granted or denied something that he or she desired. Next, you should review the situation by interviewing all involved parties, both witnesses and the accused. If the complaint continues, the investigator should interview other employees who could help assess the situation or shed some light on the issue. Finally, you should evenly weigh the evidence and provide a written report of your findings to upper-management or the company’s legal counsel.

The role of HR

Even when favoritism is not illegal, Human Resources professionals understand the importance of treating all workers fairly. Maintaining an environment of respect and professionalism benefits everyone. Generally, Employers do this by creating a Culture of Inclusiveness and Fairness. HR efforts help to promote and reinforce this inclusiveness through policy creation, enforcement of those policies, and open communications. Promoting the policy of Equal Employment Opportunity (EEO) to ALL employees helps to ensure that favoritism (real or perceived) is kept in check. Ensuring all employees are treated equally regardless of EEO protected classes creates a workplace free from favoritism and promotes retention of employees as well as morale . Furthermore, if a Company policy is to treat everyone equally, when there is a favoritism situation, HR should speak with all employees involved – the person demonstrating favoritism and the employee who is feeling it – regardless of their protected class status. During performance reviews and recognition programs, HR needs to be cognizant of how disparities in pay and advancement are perceived. If it is determined that there is a disparity, HR needs to encourage supervisors to address the situation directly with the employee who is being favored. If favoritism is discovered, HR should address the issue directly with the employee who is showing favoritism. When favoritism occurs, addressing it quickly helps eliminate the situation before it is perceived as discriminatory or harassing in nature.

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