Ethical Issues In Small Business Essay

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According to the U.S. Census Bureau, nearly forty-seven percent of all businesses employ fewer than ten employees. Small business is a vitally imperative to our nation’s well-being. Small business is responsible for creating the majority of our new jobs, employing nearly half of the American’s private workforce, and providing half of our country’s private non-farm gross domestic product (SBA 2009). Regardless of your politics, since President Barack Obama took office in 2008, an immense degree of emphasis has been placed on small business. Some of the emphasis has been positive while other parts have been negative.
One of the principal differences in in the U.S. Equal Employment Opportunity Commission’s (EEOC) treatment of small businesses’ …show more content…

A precedent case changed the way several businesses handle EEOC grievances. In the case of Arbaugh v. Y&H Corp, a female employee brought a lawsuit against her former employer claiming she had been sexually harassed and a lower court jury found in favor of the employee and award her punitive and compensatory damages. The employer did not realize an exclusion from the Civil Rights Act of 1964 applied to the business due to the small number of employees on the payroll. The Supreme Court found that even though Y&H Corp. did not employ fifteen or more employee it did not preclude a federal district court from hearing the complaint. This case directly influences the relaxed rules related to the Civil Rights Act for smaller businesses. A component of the thought behind a different level of enforcement for small businesses is they cannot handle the monetary implications of higher standards. Since this case in 2006, employers routinely make the applicable enforcement agency aware they fall below the employee threshold and this has provided an enhanced level of protection (Gentry, Robinson, Dibrell, & Franklin, 2013). This has not mitigated the risk that the EEOC will find a small business has violated Title VII and the business owner must appear in court to provide evidence they are a covered employer. The Arbaugh case created

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