Guide: How to handle gender discrimination in the workplace — and 12 ways to prevent it

Despite progress made over the years regarding gender equality in the workplace, most studies on the subject show that businesses still have a long way to go.

If a person is treated worse than their colleagues or job applicants because of their sex or gender, they’re facing gender discrimination. Gender discrimination can be an issue throughout the entire employment process, from the job interview to the exit interview or retirement.

Some common examples of gender discrimination include failure to promote, unfair treatment, earning lower wages, being given less demanding assignments, and receiving less support from supervisors based on one’s gender — all of which are illegal practices.

Even though the terms sex and gender do not signify the same things, they are often used interchangeably in discrimination laws. Either way, gender discrimination is illegal and undesirable, much like any other type of discrimination based on race, ethnicity, nationality, religion, or age.

Common examples of gender discrimination at work

Gender discrimination affects all genders, but the majority of cases are reported by women. While a significant number of men do report gender discrimination at work, it’s still far and away an issue that women face most predominantly. Let’s take a look at some of the most common types of gender discrimination in the workforce today to understand what both employees and employers can do to prevent it.

Pregnancy discrimination

Pregnancy discrimination is a common form of gender discrimination. Companies often hesitate to hire women because of their potential desires to start families. This is mostly because, after giving birth, these employees would then go on paid maternity leave and effectively leave the workforce for a period of time. It’s also the reason that women might be treated unfairly, fired, or passed over for promotions and senior positions.

It is simply a fact that working mothers still make less money than working fathers, making 71 cents for every dollar their male colleagues make. Regardless of credentials and experience, women in the workforce are often penalized for taking time off to give birth, bond with their child, or receive prenatal care.

Additionally, employees can experience discrimination or harassment at work for breastfeeding or pumping breastmilk. That said, Title VII of the Civil Rights Act now prevents employers from discriminating against their employees for breastfeeding or pumping at work.

Harassment

In male-dominated industries, women are disproportionately more likely to be victims of some form of sexual harassment at work. Between 2018 and 2021, 78.2% of all sexual harassment claims filed to the Equal Employment Opportunity Commission (EEOC) were from women.

The fact that nearly 80% of sexual harassment cases were reported by women is a huge cause for alarm, and one of the reasons why working in male-dominated industries is more challenging for women.

Sex or gender-based harassment does not need to be sexual in nature and encompasses any type of harassment that occurs due to a person’s sex, gender identity, sexual orientation, etc.

The pay gap

Many workplaces are not transparent about the amount of money they pay their workers or what these decisions are based on. Still, under the Equal Pay Act, it is illegal for employers to pay one gender less than the other for the same work. Employers must provide “equal pay for equal work.”

This means that employers aren’t legally allowed to pay a woman less than a man for the same position.

That said, while the government does enforce individual companies to provide equal pay, the gender pay gap is still very present overall. Women earn less than men in more than 90% of occupations, earning around 84 cents on the dollar to their male counterparts. Interestingly, there is an even higher wage gap with women in higher earning positions.

Hiring discrimination

One of the most common places in which women and gender minorities face discrimination is during the recruitment process. Employers tend to consciously or unconsciously favor male candidates. In fact, according to a United Nations report, 9 out of 10 men and women worldwide hold some sort of bias against women. 

While female representation in high-paying jobs has improved, women still only make up 35% of the workforce in the top 10 highest-paying jobs, showing an obvious case of gender-based hiring discrimination.

Due to this hiring bias, highly qualified women are often overlooked for positions, perpetuating gender imbalances and limiting diversity in the workforce. 

Stereotyping

Another form of workplace gender discrimination involves stereotypes. Gender stereotypes in the workplace are fixed beliefs and assumptions about how men and women should behave professionally. These stereotypes tend to have a binary view of gender, ignoring the more complex reality of gender expression. 

There have been improvements in gender stereotyping in recent years; according to a 2022 study by Zety, more than 73% of workers believe there is no correlation between gender and professional skills.

That said, this same study found that three out of four women still claim that gender stereotyping is a central issue in the workplace.

It is beyond important to break down these stereotypes as they can lead to discriminatory practices, such as assuming women are more suited for administrative tasks or underestimating men’s emotional intelligence.

Unfair dress codes and standards of appearance

Dress code discrimination is another common form of workplace gender discrimination. Employers have the right to enforce dress codes and appearance standards on employees. In fact, employers can even legally implement different dress codes for men and women. That said, they cannot create dress codes that discriminate against or target one gender more than another. 

In 1989, the SCOTUS decision in Price Waterhouse v. Hopkins set a precedent for sex discrimination in dress codes when it determined that Hopkins, a woman, was discriminated against by Price Waterhouse for not dressing in “feminine attire.”

For example, an employer can require employees to dress formally, asking men to wear blazers and women to wear formal dresses, skirts, and pantsuits. However, the employer cannot ask that men wear collared shirts and ties while allowing women to wear less restrictive blouses without a tie. Similarly, an employer would likely face issues if they required women to wear makeup as part of the dress code while placing no equivalent grooming expectations on men.

Representation in senior management

Strides have recently been made regarding this issue, but there is still plenty of work to be done. In 2024, only 32.2% of leadership roles worldwide were held by women.

And when we look at the CEOs and heads of major companies, the gender gap becomes much more prevalent. Only 8% of S&P 500 CEOs and 11% of Fortune 500 CEOs are women. On the other hand, 76% of public school teachers and two-thirds of the global healthcare workforce are women.

While both men and women report that their biggest barrier to progress is finding the time to improve their employment skills, there’s a huge imbalance in women, citing a lack of access to development work opportunities as another issue holding them back from getting senior roles. Women also cite responsibilities outside of work and a lack of opportunities to network as two other serious barriers keeping them from ascending to senior management roles.

Gender identity discrimination

Gender discrimination also includes discrimination based on gender identity. Transgender people and gender-nonconforming or nonbinary people are also frequent targets of gender discrimination. In 2020, the SCOTUS affirmed that discrimination based on gender identity and sexual orientation violates the Civil Rights Act and is unlawful in the workplace.

Trans and nonbinary workers face more workplace discrimination, are paid less on average, and tend to have higher unemployment rates than their colleagues.

Effects of gender discrimination in the workplace

No company wants workplace gender discrimination to occur. For one thing, it is illegal and can pose some serious threats to your business. Additionally, it can reduce employee morale and cause your staff to lose faith in your company.

Let’s take a look at some of the main effects of gender discrimination.

Decrease in mental health and productivity

When employees feel undervalued or discriminated against, their engagement and productivity often decline, impacting the overall performance of the organization. Gender discrimination and sexual harassment can affect an employee’s mental health, leading to burnout. It’s a reason that many women have been hesitant to return to physical offices from remote work scenarios.

High turnover rates

For obvious reasons, employees tend to quit their jobs when they are discriminated against. When a person feels that they are being denied a promotion, paid less, or harassed due to their gender or gender identity, they are more likely to look for work elsewhere.

Intensified workplace conflicts

Discrimination can (understandably) make people angry. And while everyone reacts differently to being treated poorly, in some cases, discrimination can cause outbursts and conflicts that can create more problems for the company and obstruct your business’s workflow.

Lawsuits and financial consequences

The most serious effect that gender discrimination can have on a business is legal battles, lawsuits, and settlements. If an employee experiences workplace harassment or discrimination, they may file a claim to the EEOC, which can result in your company paying significant settlements and legal fees. This is why it’s incredibly important to be proactive when it comes to preventing and addressing gender discrimination within your company.

How should employees handle gender discrimination?

If you believe that you or another employee in your company is being discriminated against because of gender, it’s important to be proactive. Identifying and reporting cases of discrimination in the workplace is the best way to prevent instances from occurring in the future.

Know your rights

In many cases, employees who are victims of gender discrimination do not report cases because they do not fully understand their rights as employees. The EEOC clearly outlines that gender and sex discrimination — including sexual harassment, retaliation, or any other form of discrimination — is illegal.

Additionally, it is illegal for a company to deny a promotion, pay an employee less, or give fewer benefits to an employee solely because of their gender, sexual orientation, or gender identity.

Notify your employer or HR

Once you have determined that sexual harassment or gender discrimination has taken place, you should file an internal complaint following your company’s standard reporting procedures. Your employer should have anonymous or third-party reporting systems to avoid bias, especially if the perpetrator of the discrimination is in a management position.

File charges with a government agency

Depending on your state, there are a number of agencies that help enforce federal anti-discrimination laws. The EEOC, as we mentioned earlier, is the agency that most employees turn to when they would prefer not to file a complaint internally — sometimes because the discrimination comes directly from the people they would need to report it to.

Talk with a lawyer

Discussing the discrimination and harassment that occurred with an employment lawyer is the best way to ensure your claim is processed in the most effective way. An employment lawyer can advise you on the best course of action and represent you in the case of a lawsuit against the company. In many cases, employment lawyers take a percentage of your settlement or court awards, so you won’t have to pay the lawyer unless you win the suit.

12 ways employers can prevent gender discrimination in the workplace

The most effective way to keep your employees motivated to learn new things and grow with the company is by making them feel safe and appreciated. A discrimination-free work environment is vital to achieving this goal. Matters such as an employee’s sex or gender shouldn’t be a factor in any business decision. So, what can you do to prevent gender discrimination from occurring in your workplace?

• Lead by example: Your employees and staff are obviously going to be much more likely to take your discrimination policies seriously if you and the core leadership in your company follow them as well. You should lead by example when it comes to avoiding gender discrimination, as this can set a precedent and ensure all staff within a company, including executives, are held accountable.

• Increase transparency: A great way to ensure your workers get promotions or higher pay solely based on their hard work and dedication is by making the hiring and evaluation processes as transparent as possible. Clearly identify the milestones workers need to reach to qualify for senior-level positions.

• Use inclusive and gender-neutral language: There are quite a few dated and noninclusive terms in the professional world. For example, terms like “businessman,” “chairman,” and “salesman” blatantly exclude women and gender-neutral workers. In order to avoid gender-exclusive language and foster inclusivity, you should use gender-neutral terms like “chairperson,” “businessperson,”  and “salesperson.”

• Consider providing childcare access: Childcare costs have skyrocketed in recent years and are now one of the biggest expenses for American workers. Lack of childcare access or the inability to afford childcare can be a major factor causing people to quit the workforce. Providing childcare subsidies as a work benefit — or providing free on-site childcare — can be a game changer for many working parents.

• Include flexible work policies: More than 90% of women say that hybrid and remote work help to equalize the gender equality gap in the workplace. The classic 9-to-5, Monday-to-Friday schedule does not work for most working parents. Some employees with young children may need to breastfeed throughout the day and simply may not be able to leave their child for a full workday. However, this struggle doesn’t end once children reach school age. Public schools are out of session during the summers, not to mention there is spring, winter, and fall breaks to account for. This makes it difficult for many parents to balance their work schedule with their children’s schedule. Allowing employees to work remotely or have flexible work hours is a great way to ensure that all genders in your workplace are getting the same opportunities. 

• Implement clear and easy ways to report incidents: One of the most important ways to minimize and keep track of gender discrimination incidents is to implement strong reporting systems. Make sure that all employees are aware of the reporting procedures and that the systems are clear, easy, and functional. You should also create several avenues for workers to report incidents.

• Analyze and address gender pay gaps in your organization: It’s good practice to audit your company for gender, racial, and sexual orientation pay gaps every so often. While you may not be deliberately paying one group of workers less, you may find that, for example, the women in your company are paid 30% less than the men. This then gives you the opportunity to determine why the gap in pay exists and fix any discriminatory pay issues.

• Prioritize diversity in your hiring practices: Prioritizing and promoting diversity in your hiring process is an essential practice in preventing discrimination. Begin by evaluating your recruitment strategies to ensure they are inclusive and free from bias. One common way companies do this is by implementing blind recruitment practices, where information such as names, race, and gender are removed from applications, allowing candidates to be evaluated solely on their skills and qualifications. 

• Provide paid maternity and paternity leave: Pregnancy shouldn’t affect someone’s position of employment. Build a safe, honest, and friendly environment for all parents, fathers included. Paid maternal leave as a part of your family-friendly benefits package is great, but proper parental leave for both mothers and fathers is even better. 

• Provide family-friendly insurance plans: You should consider the needs of everyone on staff when providing insurance as an employee benefit. Providing family-friendly packages that cover dependents and pregnancy can make your workplace very attractive to top talent of all genders.

• Provide training: Sensitivity training will help companies avoid future complications and gender-based violence or harassment — as well as the lawsuits that can stem from these types of issues. Additionally, it’s crucial to make your employees feel comfortable voicing their concerns and coming to you when looking for a solution. Building trust in your workplace will empower employees to be better at communicating, cooperating, and performing their everyday tasks.

• Introduce zero-tolerance policies: The best way to prevent potentially hostile work environments (and lawsuits) is to draw clear lines and identify behaviors that won’t be tolerated in any capacity.

There are many ways to prevent gender discrimination in the workplace, and they all start with proactively promoting a community of equality. Still, even if your business takes genuine steps toward preventing gender discrimination, it only takes one such situation to tarnish the company’s reputation and possibly lead to a very expensive lawsuit.

Insurance as financial protection

Gender discrimination in the workplace is a serious problem that can be very damaging to your company. Should your employees feel discriminated against and decide to sue, the legal expenses and reputational damage could be difficult to recover from.

Having the right risk management program in place is crucial in protecting against these possible expenses and damages. Investing in business insurance allows your company to transfer the financial stress and damage to a third party, the insurer.

But what insurance coverage protects your company against gender discrimination claims?

EPLI

Employment practices liability insurance (EPLI) covers employment-related claims such as failure to promote, wrongful termination, or gender-based harassment. It includes legal defense costs, settlements, and fines, helping your company manage the financial impact of such allegations.

If you want to learn more about how EPL insurance can protect your business in these situations, you can watch the video below.

Directors and officers (D&O) insurance

In cases where company executives or core leadership are accused of gender discrimination, D&O insurance protects their personal assets by covering legal defense and damages. 

For example, if employees are not happy with the way your management responds to gender discrimination claims, they may look to sue the management team personally. In this case, EPLI will not protect your company’s executives and board members. Having a D&O policy in place will help cover the personal assets of your directors and officers and pay for both defense costs and damages that result from such claims.

Management liability insurance

Our recommendation is to purchase management liability insurance that bundles both policies (D&O and EPLI) into one cost-efficient package. This allows your company to avoid any potential gaps in coverage.