North Carolina Memorandum - Employment of Relatives in the Same Department
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FAQ
Is it legal to hire and work with family? It is completely legal to hire and work with family members. However, because nepotism (favoritism toward family members) can be a divisive topic in the workplace, it is a good idea to have strict policies in place that prevent any preferential treatment.
The employment of relatives in the same area of an organization may cause serious conflicts and problems with favoritism and employee morale. In addition to claims of partiality in treatment at work, personal conflicts from outside the work environment can be carried into day-to-day working relationships.
Family Members Are 'Employees'No, it's not. Under the labor law, you are considered an employee, which is defined as someone who is permitted to work. Even though you are working for your aunt, in the eyes of the law you are still considered an employee.
Nepotism is the practice of giving jobs or favorable treatment to friends and family members. Nepotism in and of itself is not illegal. A company owner is allowed to hire a daughter, son, sibling, friend, or any other person they like, even if that person is not the most qualified for the job.
The short answer is no. It's common for small, private, or family-run businesses to hire family members. In most cases, hiring family members is not illegal, but it can depend on the job or company. For example, if you work for the government, hiring a family member might be considered a conflict of interest.
Related Terms: Family-Owned Business. In the business world, nepotism is the practice of showing favoritism toward one's family members or friends in economic or employment terms. For example, granting favors or jobs to friends and relatives, without regard to merit, is a form of nepotism.
There is nothing in California law that prohibits family members from working together.
No, while family members can work together in the same department, they can no report to one another.
Violate state protections.Many states prohibit employers from discriminating against applicants and employees based on their marital and/or family status. In these states, a blanket policy that bars any relative from working with the company may violate state law.
