Can we prohibit the hiring of spouses of employees?
It’s not a good idea because the California Fair Employment and Housing Act prohibits discrimination in employment based on marital status.
However, the act also states that nothing within it affects the right of employers to reasonably regulate, for reasons of supervision, safety, security, or morale, the working of spouses in the same department, division, or facility consistent with state and federal law. (The act applies to all employers with five or more employees.)
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In addition, depending on how they are written or applied, policies and practices that prohibit or restrict the employment or affect the transfer of certain employees because they are related to other employees may be discriminatory. Policies favoring or discouraging the hiring of relatives should be carefully monitored to avoid having a disparate impact on protected classes. Consider any possible adverse impact because of race, color, religion, sex, national origin, age, or disability.
If you opt for an anti-nepotism policy, be sure that it is based on a clearly defined business rationale. For example, if your concern is favoritism, limit your policy to prohibiting relatives from supervising one another. If your concern is integrity, limit relatives from auditing one another. Be prepared to offer a legitimate, business-related explanation of your anti-nepotism policy. — CELA Editors