Discrimination in the workplace is a ubiquitous part of organizational life. However, the topic is too often framed simplistically and, as a consequence, the implications of research in this area are often misunderstood. Discrimination is usually defined as an inherently negative event to be avoided. Yet, we need to recognize that discrimination is neither inherently positive nor negative, and is complex in its manifestation. Discrimination is defined here as behavior of an individual, group, or organization in which people are treated differently on the basis of their perceived membership in a category. These differences in treatment can be in the form of more positive treatment of one group, more negative treatment of another group, or both. Those who discriminate in the workplace can do so in a blatant or subtle manner, and may or may not do so intentionally. Those who discriminate, as well as those who are the targets, may be aware or unaware of the differential treatment. Finally, discrimination may be legal or illegal, ethical or unethical, and can be beneficial or harmful to those involved. A formal policy to not reward black employees as highly as white employees would be most likely be illegal, unethical, and harmful, whereas a policy to reward those who have higher productivity, if implemented through valid procedures that do not adversely impact on racial minorities, could be legal, ethical, and beneficial. As discussed here, the crucial question is not how to eliminate discrimination, but rather how to ensure that it is legal, ethical, and beneficial.