You have worked at a family-owned shop for years, but your boss promotes a less experienced relative. Now your boss also asks you to run personal errands after work without paying for your time. You want to keep your job, but does your boss have the right to treat you this way?
Favoring relatives is not illegal. But a family-owned business still has to follow the workplace laws that apply to it. Bias based on race or sex, or failing to pay for required work, may break those laws.
When family favoritism becomes discrimination
Losing a promotion to the owner’s son may seem unfair, especially when you have more experience. But favoring a relative alone is not a violation of employment laws.
However, that changes if your boss passes you over due to your race or sex. Such a choice could go against discrimination laws. This can be amplified by comments about your background during promotion talks.
Your workplace’s size also matters. Indiana’s civil rights law generally covers employers with at least six workers but does not protect people employed by their parent, spouse or child. Title VII, a federal law, covers employers with at least 15 workers. A separate federal law, Section 1981, prohibits race discrimination even at smaller businesses.
When personal errands count as work
Your workday ends at 5 p.m., but your boss sends you to buy groceries for a family dinner. The trip takes another half hour, yet you receive no pay for it.
Even though the groceries are personal, your boss assigned the errand. If federal wage rules cover your job, that time generally counts as work. Calling it a favor does not erase those minutes.
The extra time might push your weekly total above 40 hours. If overtime rules cover your job, federal law requires at least one and a half times your regular pay rate for hours above 40.
Keeping track of what happened
You may want to save your work schedules and note how long errands take. Messages about the promotion could also help you recall what your boss said. Those details help you assess your options for handling a workplace dispute.