City of Madison Makes Unemployed Status a Protected Class

Employment Law

 Last week, the City of Madison, Wisconsin became the latest to make unemployment a protected class, joining a small but growing number of cities and states that prohibit employers from discriminating against job applicants based on their unemployment status and creating private rights of action in court.  The National Employment Law Project commended Madison's decision and expressed hope it would encourage other cities to do the same.  The Madison ordinance specifically bars employers from discriminating against individuals based on their unemployment status with respect to compensation, or the terms, conditions, or privileges of employment.  It also bars employers from publishing any notice or advertisement that discriminates against the unemployed.  Discrimination complaints seeking monetary damages and other relief can be filed with the Madison Equal Opportunities Commission and in some circumstances, in Dane County Circuit Court.  Earlier this year, New York City enacted a comprehensive ban on discrimination based on unemployment status, including a private right of action in state court, and last year, Washington D.C. adopted a similar measure, but did not provide direct access to the courts.  New Jersey and Oregon have enacted laws that just bar employers from placing advertisements that seek to disallow unemployed persons from applying for available positions.  In 2011, the Equal Employment Opportunity Commission held a meeting on whether employers are unfairly screening out the unemployed in hiring but has not yet taken any other action.  Should long-term unemployment remain an issue in 2014 and 2015, employers should expect additional legislative and regulatory efforts along these lines.