Discrimination Based on Bankruptcy May Be Unlawful

With so many people having filed for bankruptcy protection in the current economy, it’s important to know that it is unlawful for an employer to discriminate against a worker because he or she went bankrupt.

Most everyone is aware that it’s illegal to discriminate on the basis of race or sex but few people realize that “bankruptcy discrimination” also violates federal law. However, the law isn’t as extensive as the laws against race and sex discrimination.

A federal appeals court in Philadelphia recently decided that while it’s illegal to fire someone for going bankrupt, it’s okay to refuse to hire someone because of a prior bankruptcy because the discrimination rules in the federal bankruptcy laws are different from the ones in the federal civil rights laws.

Please note that this communication does not constitute legal advice. If you have a question about this topic or any other business law or employment matter, call or email The Brown Law Firm, LLC, a Massachusetts firm dedicated to business and employment law.

Boston Bar Assosiation