Is nepotism illegal and if so, what are the fines and penalties?

  • Home
  • /
  • Blog
  • /
  • Is nepotism illegal and if so, what are the fines and penalties?



Is nepotism illegal and if so, what are the fines and penalties?



So, nepotism isn’t actually illegal. However, it can be problematic. Here is a great article. https://www.goldstarlaw.com/is-nepotism-illegal/

This being the case, there are not really fines for this activity unless “nepotism” becomes discrimination.


The article above makes some good points:

For example, say a small business owner belongs to a certain church.  If the business owner only hires people from the same church or religion or gives employees from the same church or religion preferential treatment over other employees, this goes beyond just hiring a family member- this is religious discrimination because employees are being treated worse based on their religion.

Another example of “nepotism” crossing the line into illegal employment practices that we see frequently is letting family get away with illegal behavior.  Just because an employer is used to putting up with a relative’s bad behavior does not mean the relative’s coworkers should be subjected to illegal harassment too.  If an employee engages in sexual harassment, or racial harassment or some other illegal behavior in the workplace, and the employer lets it go without taking action because the harasser is family, the employer’s tolerance of that harassment is illegal.


Penalties for discrimination are all over the map. Here are some examples of actions the EEOC has taken against companies that exercise some form of discrimination:

Lady Luck Steakhouse Agrees to Resolve Allegations of Pregnancy Discrimination

Corning to Pay $120,000 to Settle EEOC Sex Discrimination Case

Court Awards Over $80,000 Dollars Against Coastal Drilling East, LLC and Coastal Well Service, LLC In EEOC Race Discrimination Lawsuit

EEOC Sues Cloudbeds for Discriminating Against Deaf Applicant


I hope this helps!


Be Audit-Secure™!

Log in or Register to save this content for later.