Understanding Systemic Discrimination in Corporate Hiring Practices

By Toni Jaramilla
Hand selecting red wooden figure from group of wooden figures

Systemic discrimination in corporate hiring practices refers to entrenched patterns of bias and inequality that disadvantage certain groups, particularly racial minorities, in employment decisions. In California, a state known for its progressive policies and diverse population, systemic discrimination persists in various forms, affecting both job seekers and employees. 

Despite legal structures aimed at promoting equality, such as the California Fair Employment and Housing Act (FEHA) and the Unruh Civil Rights Act, systemic discrimination remains a significant issue in the corporate sector.

Understanding systemic discrimination in corporate hiring practices is crucial for those looking to protect themselves when looking for employment. At Toni Jaramilla, A Professional Law Corporation in Los Angeles, California, we’re committed to protecting you in the event of systemic discrimination. Here, we’ll discuss legal avenues available to victims of workplace discrimination in California.

Historical Context and Legal Structure

California has a long history of addressing employment discrimination through legislation. The FEHA, enacted in 1959, prohibits discrimination in employment based on race, color, religion, sex, gender identity, sexual orientation, marital status, national origin, ancestry, disability, medical condition, genetic information, age, or military and veteran status. 

The Unruh Civil Rights Act, also enacted in 1959, extends these protections to all business establishments in California, including corporations. These laws are enforced by the California Department of Fair Employment and Housing (DFEH), which investigates complaints and takes legal action against violators.

Despite these legal protections, systemic discrimination persists in California's corporate hiring practices. Studies have shown that racial minorities, particularly Black and Latino individuals, face significant barriers in securing employment, even when they possess the same qualifications as their white counterparts. 

This disparity is often attributed to unconscious bias, discriminatory hiring practices, and structural inequalities within organizations.

Manifestations of Systemic Discrimination

Systemic discrimination in corporate hiring practices manifests in various ways, significantly impacting the equitable distribution of employment opportunities.

Racial Bias in Hiring

Research indicates that racial bias continues to influence hiring decisions in California. A study conducted in 2023 found that Black and Latino applicants received fewer callbacks than white applicants with identical resumes. 

This suggests that unconscious bias and stereotypes about race play a significant role in hiring decisions, leading to unequal opportunities for qualified candidates.

Discriminatory Hiring Practices

Certain corporate practices have been identified as significant contributors to systemic discrimination, often subtly embedding bias within the hiring process. One such practice is the pervasive use of "cultural fit" as a primary criterion for hiring. 

While seemingly innocuous, this concept can disproportionately disadvantage racial minorities. It frequently serves as a veiled justification for selecting candidates who mirror the existing demographics and comfort zones of predominantly white hiring teams. 

This can lead to a workforce that lacks diversity, as "cultural fit" often reflects an unconscious preference for individuals who share similar social norms, communication styles, and backgrounds, rather than evaluating a candidate's genuine ability to contribute positively to the organization's culture and goals.

Additionally, a heavy reliance on employee referral programs, while often lauded for efficiency, can inadvertently perpetuate homogeneity within the workforce. Employees are naturally more inclined to refer individuals who share similar backgrounds, experiences, and social networks. 

This creates a self-reinforcing cycle where the existing demographic makeup of the company is continuously replicated. As a result, qualified candidates from underrepresented groups, who may not have established connections within the company's referral network, are often overlooked. 

This practice, while appearing meritocratic, can significantly limit the talent pool and prevent the entry of diverse perspectives and skills that are crucial for innovation and growth.

Impact of Criminal Background Checks

The use of criminal background checks in hiring processes can disproportionately affect Black and Latino applicants. While California has enacted "Ban the Box" laws to delay inquiries about criminal history until later in the hiring process, studies have shown that these laws can have unintended consequences.

In some cases, employers may respond by increasing scrutiny of other aspects of applicants' backgrounds, such as their names or addresses, which can still lead to discriminatory outcomes.

The pervasive nature of racial bias, discriminatory hiring practices like the misuse of "cultural fit," and the adverse effects of criminal background checks collectively illustrate the entrenched challenges within corporate hiring. 

Addressing these multifaceted forms of systemic discrimination requires a comprehensive and proactive approach to confirm genuinely equitable opportunities for all job seekers.

Intersectionality and Discrimination

Systemic discrimination in corporate hiring practices isn’t limited to race alone; it intersects with other factors such as gender, age, and socioeconomic status. For instance, Black women in California face compounded discrimination due to both their race and gender. 

A 2025 report highlighted that 57% of Black women experienced racism or discrimination at work within the past year, and nearly 48% felt excluded from career advancement opportunities. These findings underscore the need for a nuanced understanding of how multiple forms of discrimination intersect and affect individuals' access to employment opportunities.

Legal and Policy Responses

In response to systemic discrimination, California has implemented several legal and policy measures aimed at promoting equity in corporate hiring practices. 

The California Equal Pay Act, for example, prohibits employers from paying employees of different genders different wages for substantially similar work, helping to combat pay discrimination against women and other marginalized groups. 

Additionally, Senate Bill 310 (2020) prohibits employers from discriminating against applicants or employees based on their natural hair texture or protective hairstyles, such as braids and dreadlocks, which disproportionately affects Black individuals.

Despite these efforts, challenges remain in confirming effective enforcement and accountability. For instance, the California Department of Fair Employment and Housing v. Activision Blizzard case revealed that women, particularly women of color, were subjected to discriminatory treatment in hiring, pay, assignment, promotion, and firing. 

The lawsuit highlighted the need for stronger enforcement of anti-discrimination laws and greater transparency in corporate hiring practices.

Addressing Systemic Discrimination

To combat systemic discrimination in corporate hiring practices, a multifaceted approach is necessary:

  • Implementing blind recruitment: Removing personal information such as names, addresses, and photos from job applications can help reduce unconscious bias and promote fairer hiring decisions.

  • Standardizing hiring processes: Developing clear and consistent criteria for evaluating candidates can minimize subjective judgments and make sure that all applicants are assessed based on their qualifications and abilities.

  • Training and education: Providing training on unconscious bias and diversity, equity, and inclusion can help hiring managers recognize and address their own biases, leading to more equitable hiring practices.

  • Promoting diversity and inclusion: Creating an inclusive workplace culture that values diversity can help attract and retain employees from underrepresented groups, fostering innovation and improving organizational performance.

  • Monitoring and accountability: Regularly reviewing hiring data and outcomes can help identify disparities and hold organizations accountable for their hiring practices.

A comprehensive strategy is vital to effectively address systemic discrimination in corporate hiring. Key approaches include implementing blind recruitment to mitigate unconscious bias, standardizing hiring processes to confirm consistent evaluation, and providing training on diversity, equity, and inclusion.

Furthermore, promoting a diverse and inclusive workplace culture and rigorously monitoring hiring data are crucial steps in fostering equitable employment opportunities.

Systemic discrimination in corporate hiring practices remains a significant issue in California, despite the state's progressive policies and laws. Addressing this issue requires a comprehensive approach that includes legal reforms, organizational changes, and cultural shifts. 

By implementing strategies such as blind recruitment, standardized hiring processes, and diversity training, organizations can work toward creating a more equitable and inclusive workforce. 

Contact Us Today

Continued efforts are essential to confirm that all individuals, regardless of their race, gender, or background, have equal access to employment opportunities and are judged solely on their qualifications and abilities. If you’ve experienced workplace discrimination, our staff at the office of Toni Jaramilla serves clients throughout Los Angeles, California. Contact our firm today.