Many private clubs have long operated under a widely misunderstood premise that federal employment discrimination laws simply do not apply to them. While there is a kernel of truth to that belief, the reality is far more nuanced – and, in many cases, far riskier than clubs appreciate. Too often, clubs treat the “private club exemption” to federal anti-discrimination statutes like Title VII of the Civil Rights Act of 1964 (Title VII) and the Americans with Disabilities Act (ADA) as a blanket permission slip to take a more relaxed approach to anti-discrimination, harassment, and retaliation issues. That approach can create significant exposure, because these exemptions are narrow, highly fact-specific, and frequently undermined by a club’s own operations. We’ll explain everything you need to know and provide four practical steps that can help reduce your risk.
The Federal Exemption: Narrower Than You Think
Under Title VII and the ADA, certain “bona fide private membership clubs” may be exempt from federal anti-discrimination requirements. But this exemption is not automatic – and not all clubs qualify.
To fall within the exemption, a club generally must:
The Equal Employment Opportunity Commission (EEOC), the federal watchdog on employment discrimination in the private sector, has articulated a general framework for assessing whether a private club meets the exemption, which looks at...
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