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Chapter 3
The Legal Environment
Equal Employment Opportunity and Safety
Copyright © 2016 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without
the prior written consent of McGraw-Hill Education.
Chapter 3 presents an overview of the U.S. legal system, noting
the different legislative bodies, regulatory agencies, and
judicial bodies that determine the legality of certain HRM
practices. It discusses the major laws and executive orders that
govern these practices. The legal environment, particularly the
laws affecting the management of people, is one of several
environmental factors affect an organization’s HRM function.
Managers often want a list of “dos and don’ts” that will keep
them out of legal trouble. They rely on rules such as “Don’t
ever ask a female applicant if she is married” without
understanding the “why” behind these rules. Clearly, certain
practices are illegal or inadvisable, and this chapter will provide
valuable tips for avoiding discrimination lawsuits. However,
such lists are not compatible with a strategic approach to HRM
and are simply mechanical reactions to the situations. Our goal
is to provide an understanding of how the legislative,
regulatory, and judicial systems work to define equal
employment opportunity law to be better prepared to manage
people within the limits imposed by the legal system. Doing so
effectively is a source of competitive advantage. Doing so
ineffectively results in competitive disadvantage. Rather than
viewing the legal system as a constraint, firms that embrace the
concept of diversity can often find that they are able to leverage
the differences among people as a tremendous competitive tool.
Learning Objectives
LO 3-1 Identify the three branches of government and the role
each plays influencing the legal environment of human resource
management.
LO 3-2 List the major federal laws that require equal
employment opportunity and the protections provided by each
of these laws.
LO 3-3 Discuss the roles, responsibilities, and requirements of
the federal agencies responsible for enforcing equal
employment opportunity laws.
LO 3-4 Identify the three theories of discrimination under Title
VII of the Civil Rights Act and apply these theories to different
discrimination situations.
LO 3-5 Identify behavior that constitutes sexual harassment,
and list things that an organization can do to eliminate or
minimize it.
LO 3-6 Discuss the legal issues involved with preferential
treatment programs.
LO 3-7 Identify the major provisions of the Occupational Safety
and Health Act (1970) and the rights of employees that are
guaranteed by this act.
2
Copyright © 2016 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without
the prior written consent of McGraw-Hill Education.
First we’ll review an overview of the U.S. legal system, noting
the different legislative bodies, regulatory agencies, and
judicial bodies that determine the legality of certain HRM
practices. We then discuss the major laws and executive orders
that govern these practices. After reading Chapter 3, you should
be able to:
Identify the three branches of government and the role each
plays in influencing the legal environment of HRM.
List the major federal laws that require equal employment
opportunity and the protections provided by each of these laws.
Discuss the roles, responsibilities, and requirements of the
federal agencies responsible for enforcing equal employment
opportunity laws.
Identify the three theories of discrimination under Title VII of
the Civil Rights Act and apply these theories to different
discrimination situations.
5. Discuss the legal issues involved with preferential
treatment programs.
6. Identify behavior that constitutes sexual harassment and
list things an organization can do to eliminate or minimize it.
7. Identify the major provisions of the Occupational Safety
and Health Act (1970) and the rights of employees that are
guaranteed by this act. Our chapter goal is to gain an
understanding of how the legislative, regulatory, and judicial
systems work to define equal employment opportunity law.
U.S. Legal System
Three branches
Legislative Branch
House of Representatives
Senate
Executive Branch
President
Regulatory Agencies
Legislative Branch
U.S. District Courts
U.S. Courts of Appeals
Supreme Court
3
Copyright © 2016 McGraw-Hill Education. All rights reserved.
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The U.S. Constitution sets forth the foundation of our system. It
established three major governing bodies: the legislative,
executive, and judicial branches.
The legislative branch of the federal government consists of the
House of Representatives and the Senate. These bodies enact
laws that govern many HR activities.
The executive branch consists of the President of the United
States and regulatory agencies the president oversees. Although
the legislative branch passes the laws, the executive branch
affects these laws in many ways.
First, the president can propose bills to Congress that, if
passed, would become laws.
Second, the president has the power to veto any law
passed by Congress, thus ensuring that few laws are passed
without presidential approval—which allows the president to
influence how laws are written.
Third, the regulatory agencies, under the authority of the
president, have responsibility for enforcing the laws. Thus, a
president can influence what types of violations are pursued.
Fourth, the president can issue executive orders, which
sometimes regulate the activities of organizations that have
contracts with the federal government.
Finally, the president appoints all the judges in the federal
judicial system, subject to approval from the legislative branch.
This affects the interpretation of many laws.
The judicial branch consists of the federal court system, which
is made up of three levels. The first level consists of the U.S.
District Courts and quasi-judicial administrative agencies. The
district courts hear cases involving alleged violations of federal
laws. Quasi-judicial agencies, such as the National Labor
Relations Board (or NLRB, which is actually an arm of the
executive branch, but serves a judicial function), hear cases
regarding their particular jurisdictions (in the NLRB’s case,
disputes between unions and management). If neither party to a
suit is satisfied with the decision of the court at this level, the
parties can appeal the decision to the U.S. Courts of Appeals.
These courts were originally set up to ease the Supreme Court’s
caseload, so appeals generally go from the federal trial level to
one of the 13 appellate courts before they can be heard by the
highest level, the Supreme Court. The Supreme Court must
grant certiorari before hearing an appealed case. However, this
is not usually granted unless two appellate courts have come to
differing decisions on the same point of law or if the case deals
with an important interpretation of constitutional law. The
Supreme Court serves as the court of final appeal. Decisions
made by the Supreme Court are binding; they can be overturned
only through legislation.
3
Equal Employment Opportunity (EEO)
Equal Employment Opportunity is the government's attempt to
ensure that all individuals have an equal chance for
employment, regardless of race, color, religion, sex or national
origin
413th Amendment
Abolished Slavery14th Amendment
Provides equal protection for all citizens and requires due
process in state action
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4
Equal employment opportunity refers to the government's
attempt to ensure that all individuals have an equal chance for
employment, regardless of race, color, religion, sex, or national
origin (see Table 3.1 in the text for a summary of EEO laws).
Constitutional Amendments:
Thirteenth Amendment of the Constitution abolished slavery in
the United States. The Reconstruction Civil Rights Acts were
attempts to further this goal.
Fourteenth Amendment forbids the state to take life, liberty, or
property without due process of law and prevents the states
from denying the equal protections of the law.
Congressional Legislation Civil Rights Acts (1866 and
1871)Equal Pay Act of 1963Title VII of the Civil Rights Act of
1964Age Discrimination in Employment Act of 1967Vocational
Rehabilitation Act of 1973Vietnam Era Veteran’s Readjustment
Act of 1974Pregnancy Discrimination ActCivil Rights Act of
1991Americans with Disabilities Act of 1990
5
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The Civil Rights Act passed in 1866 was later broken into two
statutes. Section 1982 granted all persons the same property
rights as white citizens. Section 1981 granted other rights,
including the right to enter into and enforce contracts. Courts
have interpreted Section 1981 as granting individuals the right
to make and enforce employment contracts. Equal Pay Act of
1963 - requires that men and women in the same organization
who are doing equal work must be paid equally. Covers
employers engaged in interstate commerce
Title VII of the Civil Rights Act of 1964 - makes it illegal for
an employer to "fail or refuse to hire or discharge any
individual because of the individual's race, color, religion, sex,
or national origin. Title VII states that it is illegal for an
employer to “(1) fail or refuse to hire or discharge any
individual, or otherwise discriminate against any individual
with respect to his compensation, terms, conditions, or
privileges of employment because of such individual’s race,
color, religion, sex, or national origin, or (2) to limit, segregate,
or classify his employees or applicants for employment in any
way that would deprive or tend to deprive any individual of
employment opportunities or otherwise adversely affect his
status as an employee because of such individual’s race, color,
religion, sex, or national origin.” The act applies to
organizations with 15 or more employees working 20 or more
weeks a year that are involved in interstate commerce, as well
as state and local governments, employment agencies, and labor
organizations.
Age Discrimination in Employment Act of 1967 - prohibits
discrimination against employees over the age of 40. Covers
employers with 15 or more employees working 20 or more
weeks per year; labor unions; employment agencies; federal
government. Vocational Rehabilitation Act of 1973 - covers
federal contractors and requires them to engage in affirmative
action for disabled individuals.
Disability
According to EEOC, a disability is a physical or mental
impairment that “substantially limits one or more major life
activity; a record or past history of such an impairment; and/or
being ‘regarded as’ having a disability by an employer whether
you have one or not, usually in terms or hiring, firing or
demotion.”
6
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6
A disability is defined as a physical or mental impairment that
“substantially limits one or more major life activity; a record or
past history of such an impairment; and/or being ‘regarded as’
having a disability by an employer whether you have one or not,
usually in terms or hiring, firing or demotion.” A person is
considered disabled not only if he or she cannot DO something
but just because he or she has a medical condition whether or
not it impairs functioning.
Executive Orders
Executive Order 11478
Government employment policies based on merit and fitness.
Executive Order 11246
Prohibits government contractors from discrimination.
7
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Executive Orders are directives issued and amended unilaterally
by the president. Two affect HRM practice:
Executive Order 11246 Requires affirmative action in hiring
women and minorities It covers Federal contractors and
subcontractors with contracts greater than $10,000
Executive Order 11478 Requires the federal government to base
all its employment policies on merit and fitness and specifies
that race, color, sex, religion, and national origin should not be
considered.
7
Enforcement of EEO
Two agencies responsible for enforcement of these laws and
executive orders:
Equal Employment Opportunity Commission
Office of Federal Contract Compliance Programs
8
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Equal employment opportunity (EEO) refers to the
government’s attempt to ensure that all individuals have an
equal chance for employment, regardless of race, color,
religion, sex, age, disability, or national origin.
Two agencies responsible for the enforcement of these laws and
executive orders:
Equal Employment Opportunity Commission (EEOC) is a
division of the Department of Justice responsible for enforcing
most of the EEO laws.
The Office of Federal Contract Compliance Programs (OFCCP)
is responsible for enforcing executive orders that cover
companies that have federal government contracts.
8
Lilly Ledbetter Fair Pay Act
Congress passed the act specifying that an “illegal act” occurs
when:
a discriminatory compensation decision is adopted;
an employee becomes subject to the decision; or
an employee is affected by it application, including each time
compensation is paid.
9
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9
Lilly Ledbetter Fair Pay Act - Congress passed the act
specifying that an “illegal act” occurs when (1) a discriminatory
compensation decision is adopted; (2) an employee becomes
subject to the decision; or (3) an employee is affected by it
application, including each time compensation is paid.
Three Major Responsibilities of EEOC
Investigate and resolve discrimination complaints.
Gather information.
Issue guidelines.
10
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EEOC has three major responsibilities:
1. Investigation and Resolution—After filing a complaint,
EEOC has 60 days to investigate. Dismissal or reconciliation
are the two possible outcomes. The complainant may sue in
federal court if not satisfied.
2. Information Gathering—EEOC monitors hiring practices
by reviewing EEO‑1 reports filed annually by firms. EEOC also
plays a role in monitoring the hiring practices of organizations.
Each year organizations with 100 or more employees must file a
report (EEO-1) with EEOC that provides number of women and
minorities employed in nine different job categories. EEOC
analyzes these reports to identify patterns of discrimination that
can then be attacked through class-action suits.
Issuance of Guidelines—EEOC determines and issues guidelines
that help employers comply with law. If EEOC cannot come to
an agreement with the organization, it has two options. First, it
can issue a “right to sue” letter to the alleged victim, which
certifies that the agency has investigated and found validity in
the victim’s allegations. Second, although less likely, EEOC
may aid the alleged victim in bringing suit in federal court.
10
Office of Federal Contract Compliance Programs
Three Components
Utilization Analysis
Goals & Timetables
Action Steps
11
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There are three components of OFCCP:
Utilization analysis compares the race, sex, and ethnic
composition of the employer's workforce with that of the
available labor supply.
The employer must develop specific goals and timetables for
achieving balance in the workforce to specify percentage of
women and minorities that an employer seeks, and date by
which that percentage is to be attained.
Employers must develop a list of action steps, which are the
written affirmative plan that specifies what an employer plans
to do to reduce underutilization of protected groups.
OFCCP annually audits government contractors to ensure that
they actively pursue the goals in their plans. These audits
consist of (1) examining the company’s affirmative action plan
and (2) conducting on-site visits to examine how individual
employees perceive the company’s affirmative action policies.
If the OFCCP finds that the contractors or subcontractors are
not complying with the executive order, then its representatives
may notify the EEOC (if there is evidence that Title VII has
been violated), advise the Department of Justice to institute
criminal proceedings, request that the Secretary of Labor cancel
or suspend any current contracts, and forbid the firm from
bidding on future contracts. This last penalty, called debarment,
is the OFCCP’s most potent weapon.
11
Three Types of Discrimination
12
1. Disparate Treatment
2. Disparate Impact
3. Reasonable Accommodation
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Legal scholars have identified three theories of discrimination:
disparate treatment, disparate impact, and reasonable
accommodation. A comparison of the theories of discrimination
shown next in Table 3.3.
12
Disparate Treatment
Disparate treatment: exists when individuals in similar
situations are treated differently based upon race, color,
religion, sex, national origin, age, or disability status.
Bona fide occupational qualification (BFOQ): is a job
qualification based on race, sex, religion, etc. that an employer
asserts is a necessary qualification for the job.
UAW v. Johnson Controls, Inc.
McDonnell Douglas Corp. v. Green
13
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Disparate treatment exists when individuals in similar situations
are treated differently based upon race, color, religion, sex,
national origin, age, or disability status. Whenever individuals
are treated differently because of their race, sex, or the like, and
there is an actual intent to treat them differently; the plaintiff
must prove that there was a discriminatory motive—that is, that
the employer intended to discriminate.
Bona fide occupational qualifications (BFOQ) - Characteristic
that is necessary, rather than preferred, for a job.
UAW v. Johnson Controls, Inc., illustrates the difficulty in
using a BFOQ as a defense. Johnson Controls, a manufacturer of
car batteries, had instituted a “fetal protection” policy that
excluded women of childbearing age from a number of jobs in
which they would be exposed to lead, which can cause birth
defects in children. The company argued that sex was a BFOQ
essential to maintaining a safe workplace. The Supreme Court
did not uphold the company’s policy, arguing that BFOQs are
limited to policies that are directly related to a worker’s ability
to do the job.
McDonnell Douglas Corp. v. Green delineated the four criteria
for a prima facie case of discrimination.
13
The Plaintiff’s Burden
Plaintiff has the burden of proving that the defendant committed
an illegal act; the idea of a “prima facie” case. Plaintiff meets
prima facie burden by showing four things:
Plaintiff belongs to a protected group.
Plaintiff applied for and was qualified for the job.
Despite possessing qualifications, plaintiff was rejected.
After plaintiff was rejected, position remained open and
employer continued to seek applicants with similar
qualifications, or position was filled by someone with similar
qualifications.
14
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Although these four elements may seem easy to prove, the court
tries to rule out the most obvious reasons for rejecting the
plaintiff’s claim (for example, the plaintiff did not apply or was
not qualified, or the position was already filled or had been
eliminated). If these alternative explanations are ruled out, the
court assumes that the hiring decision was based on a
discriminatory motive. Once the plaintiff has made the prima
facie case for discrimination, the burden shifts to the defendant.
The burden is different depending on whether the prima facie
case presents only circumstantial evidence (there is no direct
evidence of discrimination such as a formal policy to
discriminate, but rather discriminatory intent must be inferred)
or direct evidence (a formal policy of discrimination for some
perceived legitimate reason). In cases of circumstantial
evidence, the defendant simply must produce a legitimate,
nondiscriminatory reason, such as that, although the plaintiff
was qualified, the individual hired was more qualified.
14
Disparate Impact
Occurs when a neutral employment practice disproportionately
excludes a protected group from employment opportunities
Four-fifths rule
Standard deviation rule
Wards Cove Packing Co. v. Antonio
Griggs vs. Duke Power
15
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Disparate impact occurs when a facially neutral employment
practice disproportionately excludes a protected group from
employment opportunities.
Four-fifths rule - a test has disparate impact if the hiring rate
for the minority group is less than four-fifths (80 percent) of the
hiring rate for the majority group.
Standard deviation rule - uses actual probability distributions to
determine adverse impact.
-- The Wards Cove Packing Co. v. Antonio case involved a
statistical analysis of utilization rates in cannery and
noncannery jobs (pay rates for the types of jobs were quite
different).
-- In Griggs v. Duke Power, it was shown that the employer
required either a high school diploma or passing scores on two
nationally developed tests. However, the company had not
studied the relationship of these selection devices to ability to
do the job. Employees already on the job without high school
degrees were performing satisfactorily. Thus, Duke Power lost
the case.
15
Pattern and Practice
Plaintiffs attempt to show three things in class action pattern
and practice lawsuits:
Statistical disparities between composition of some group
within the company compared to some other relevant group
Individual acts of intentional discrimination that suggest
statistical disparity is a function of the larger culture
Promotion and/or pay procedures leave too much discretion to
managers, providing the avenue through which unconscious
biases can play a part
16
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Plaintiffs attempt to show three things in showing class action
pattern and practice lawsuits:
Statistical disparities between the composition of some group
within the company compared to some other relevant group
Plaintiff tries to show individual acts of intentional
discrimination that suggest that the statistical disparity is a
function of the larger culture.
Plaintiff usually tries to make the case that the promotion
and/or pay procedures leave too much discretion to managers,
providing the avenue through which their unconscious biases
can play a part.
Reasonable Accommodation
Making facilities readily accessible to and usable by individuals
with disabilities
Places special obligation on employer to affirmatively do
something to accommodate an individual’s disability or religion
17
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Reasonable Accommodation - places a special obligation on an
employer to affirmatively do something to accommodate an
individual’s disability or religion. Reasonable accommodation
is making facilities readily accessible to and usable by
individuals with disabilities.
17
Religion and Accommodation
Title VII forbids discrimination on the basis of religion just like
race or sex.
Religion also receives special treatment requiring employers to
exercise an affirmative duty to accommodate individuals’
religious beliefs and practices.
18
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18
The number of religious discrimination charges has consistently
increased over the past few years. Individuals who hold strong
religious beliefs find that some observations and practices of
their religion conflict with work duties. Although Title VII
forbids discrimination on the basis of religion just like race or
sex, religion also receives special treatment requiring employers
to exercise an affirmative duty to accommodate individuals’
religious beliefs and practices. In cases of religious
discrimination, an employee’s burden is to demonstrate that he
or she has a legitimate religious belief and provided the
employer with notice of the need to accommodate the religious
practice, and that adverse consequences occurred due to the
employer’s failure to accommodate. In such cases, the
employer’s major defense is to assert that to accommodate the
employee would require an undue hardship.
Examples of reasonably accommodating a person’s religious
obligations might include redesigning work schedules (most
often accommodating those who cannot work on their Sabbath),
providing alternative testing dates for applicants, not requiring
union membership and/or allowing payment of “charitable
contributions” in lieu of union dues, or altering certain dress or
grooming requirements. Although an employer is required to
make a reasonable accommodation, it need not be the one that is
offered by the employee.
Disability and Accommodation
Readily-accessible facilities
Job restructuring
Reassignment
Alternative testing formats
Readers or reading assistance technology
Interpreters
Allow employees to provide own accommodation
19
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Disability and Accommodation - Employers are not only to
refrain from discrimination (ADA) but they are also obligated to
take affirmative steps to accommodate individuals who are
protected under the act. Under disability claims, the plaintiff
must show that she or he is a qualified applicant with a
disability and that adverse action was taken by a covered entity.
The employer’s defense then depends on whether the decision
was made without regard to the disability or in light of the
disability.
Most accommodations are inexpensive. A study by Sears
Roebuck & Co. found that 69% of all accommodations cost
nothing, 29% cost less than $1,000, and only 3% cost more than
$1,000.Examples of reasonable accommodation with regard to
disabilities include readily accessible facilities, job
restructuring, reassignment, alternative testing formats, readers,
additional time, interpreters, or reading assistance technology
own accommodation etc.
19
Retaliation for Participation and Opposition
20
Title VII states that employers cannot retaliate against
employees for either "opposing" a perceived illegal employment
practice or "participating in a proceeding” related to an
alleged illegal employment practice.
Opposition refers to expressing to someone through proper
channels that you believe that an illegal employment act has
taken place or is taking place.
20
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Title VII states that employers cannot retaliate against
employees for either "opposing" a perceived illegal employment
practice or "participating in a proceeding” related to an alleged
illegal employment practice. However, employees do not have
an unlimited right to talk about how racist or sexist their
employers are. The courts tend to frown on employees whose
activities result in a poor public image for the company unless
those employees attempted to use the organization’s internal
channels. Employees do not have an unlimited right to talk
about how racist or sexist their employers are.
Opposition refers to expressing to someone through
proper channels that you believe that an illegal employment act
has taken place or is taking place. Participation refers to
actually testifying in an investigation, hearing, or court
proceeding regarding an illegal employment act. The purpose of
this provision is to protect employees from employers’ threats
and other forms of intimidation aimed at discouraging the
employees from bringing to light acts they believe to be illegal.
20
Diversity and EEO Issues
Sexual harassment
Affirmative action and reverse discrimination
Outcomes of Americans with Disabilities Act
21
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Summary
Heading. Text.
Heading. Text.
Heading. Text.
Heading. Text.
Use this space for overall reminders or special tips linked to the
slide or occasion. Simply select this text and replace it with
your own reminders.
Organizational demography is changing, and therefore issues
regarding diversity are increasingly important. The important
issue are: sexual harassment, affirmative action and reverse
discrimination, and outcomes of American’s with Disabilities
Act.
EEOC Definition of Sexual Harassment
Unwelcome sexual advances, requests for sexual favors, and
other verbal or physical contact of a sexual nature constitute
sexual harassment when:
1. Submission to such conduct is made either explicitly or
implicitly a term or condition of an individual’s employment
2. Submission to or rejection of such conduct by an individual
is used as the basis of employment decisions affecting such
individual, or
3. Such conduct has the purpose or effect of unreasonably
interfering with an individual’s work performance or creating
an intimidating, hostile, or offensive working environment.
22
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22
The EEOC definition of sexual harassment - unwelcome sexual
advances, requests for sexual favors, and other verbal or
physical contact of a sexual nature constitute sexual harassment
when:
1. Submission to such conduct is made either explicitly or
implicitly a term or condition of an individual’s employment,
2. Submission to or rejection of such conduct by an
individual is used as the basis of employment decisions
affecting such individual, or
3. Such conduct has the purpose or effect of unreasonably
interfering with an individual’s work performance or creating
an intimidating, hostile, or offensive working environment.
Sexual Harassment
23
Quid Pro Quo
Bundy v. Jackson
Hostile Working Environment
23
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Quid pro quo harassment occurs when some type of benefit or
punishment is made contingent upon the employee submitting to
sexual advances.
--The Bundy v. Jackson case facts showed that the plaintiff
repeatedly received sexual propositions from her fellow
employees and supervisor. She rejected these advances and was
eventually passed over for promotion without reason.
A hostile working environment occurs when someone's behavior
in the workplace creates an environment that makes it difficult
for someone of a particular sex to work.
23
Three Conditions for Sexual Harassment Cases
Plaintiff cannot have "invited or incited" the advances
Harassment must have been severe
Court must determine the liability of the organization for
actions of its employees
24
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Three critical conditions for sexual harassment cases:
The plaintiff cannot have "invited or incited" the advances
Harassment must have been severe
The court must determine the liability of the organization for
actions of its employees
Four Steps to Ensure a Workplace Free of Sexual Harassment
Policy Statement
Training
Reporting mechanism
Prompt disciplinary action
25
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To ensure a workplace free from sexual harassment,
organizations can follow some important steps. First, the
organization can develop a policy statement that makes it very
clear that sexual harassment will not be tolerated in the
workplace. Second, all employees, new and old, can be trained
to identify inappropriate workplace behavior. Third, the
organization can develop a mechanism for reporting sexual
harassment that encourages people to speak out. Fourth,
management can prepare to take prompt disciplinary action
against those who commit sexual harassment as well as
appropriate action to protect the victims of sexual harassment.
25
Affirmative Action and Reverse Discrimination
Affirmative Action was conceived as a way of taking extra
effort to attract and retain minority employees.
Imposed quota program
Debate over affirmative action continues to evoke attention
26
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Affirmative Action was conceived of as a way of taking extra
effort to attract and retain minority employees.
Imposed quota programs are negotiated with the EEOC and hold
a certain number of positions for minorities or women. The
entire debate over affirmative action continues to evoke
attention. Many people consider quotas or preferential treatment
as reverse discrimination. Although most individuals support
the idea of diversity, few argue for the kinds of quotas that have
to some extent resulted from the present legal climate.
26
Americans with Disabilities Act (ADA)
Under ADA, a firm must make "reasonable accommodation” to
a physically or mentally disabled individual unless doing so
would impose "undue hardship.”
Consequences of ADA:
Increased litigation
Cases being filed do not reflect Congressional intent
Act was passed to protect people with major disabilities
The law has not resulted in a major increase in the proportion of
people with disabilities who are working.
27
Copyright © 2016 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without
the prior written consent of McGraw-Hill Education.
Under ADA, a firm must make “reasonable accommodation” to
a physically or mentally disabled individual unless doing so
would impose “undue hardship.” Consequences of this act:
There has been increased litigation.
The kinds of cases being filed do not reflect Congressional
intent.
The act was passed to protect people with major disabilities;
however, major disabilities account for less than 4 percent of
claims. The law has not resulted in a major increase in the
proportion of people with disabilities who are working. The
debate continues regarding the effectiveness of the ADA.
27
Employee Safety
Employee safety is regulated by both federal and state
governments.
BP refinery in Texas City, Texas
Occupational Safety and Health Act (OSHA)
Authorizes federal government to establish and enforce
occupational safety and health standards for all places of
employment engaging in interstate commerce.
General Duty Clause
28
Copyright © 2016 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without
the prior written consent of McGraw-Hill Education.
28
Employee safety is regulated by both the federal and state
governments. employers need to go well beyond the letter of the
law and embrace its spirit. In March 2005, officials at the BP
refinery in Texas City, Texas, were aware of the fact that some
repairs needed to be done on some of the equipment in an
octane-boosting processing unit. On March 23, knowing that
some of the key alarms were not working, managers authorized
a start-up of the unit. The startup resulted in the deadliest
petrochemical accident in 15 years, killing 15 people and
injuring others.
Occupational Safety and Health Act (OSHA) authorizes
the federal government to establish and enforce occupational
safety and health standards for all places of employment
engaging in interstate commerce.
--The General duty clause of OSHA states that an employer has
an overall obligation to furnish employees with a place of
employment free from recognized hazards.
Table 3.6
Employee Rights Under OSHAEmployees have the right to:1.
Request an inspection.2. Have a representative present at an
inspection.3. Have dangerous substances identified.4. Be
promptly informed about exposure to hazards and be given
access to accurate records regarding exposures.5. Have
employer violations posted at the work site.
29
Copyright © 2016 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without
the prior written consent of McGraw-Hill Education.
Under OSHA, employees have a right to:
1. Request an inspection.
2. Have a representative present at an inspection.
3. Have dangerous substances identified.
4. Be promptly informed about exposure to hazards and be
given access to accurate records regarding exposures.
5. Have employer violations posted at the work-site.
OSHA Inspections, Citations and Penalties
OSHA inspections are conducted by compliance officers,
specially trained Department of Labor agents.
Violation results in a citation to the employer.
Criminal and civil penalties can be issued.
30
Copyright © 2016 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without
the prior written consent of McGraw-Hill Education.
OSHA is responsible for inspecting businesses, applying safety
and health standards, and levying fines for violations. OSHA
regulations prohibit notifying employers of inspections in
advance. OSHA inspections are conducted by specially trained
agents of the Department of Labor called compliance officers. If
compliance officers believe that a violation has occurred, they
issue a citation to the employer specifying the practice or
situation that violates the act. Criminal and civil penalties may
be assessed for willful violations that kill an employee. OSHA
has raised awareness of occupational safety, yet legislation
alone cannot solve all the problems of work site safety.
Many industrial accidents are a product of unsafe
behaviors, not unsafe working conditions. Because conforming
to the statute alone does not necessarily guarantee safety, many
employers go beyond the letter of the law.
30
Three Components of Safety Awareness Programs
Identify
Reinforce
Promote
31
Copyright © 2016 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without
the prior written consent of McGraw-Hill Education.
Safety Awareness Programs attempt to instill symbolic and
substantive changes to a safety program. There are three
primary components of a safety awareness program:
--Identifying and Communicating Job Hazards
The job hazard analysis technique breaks jobs down into basic
elements that are then rated for their potential for harm.
Technic of Operations Review (TOR) focuses on past accidents
and their causes.
--Reinforcing Safe Practices
--Promoting Safety Internationally
One common technique for reinforcing safe practices is
implementing a safety incentive program to reward workers for
their support and commitment to safety goals. Research by the
National Safety Council indicates that 40% of all accidents
happen to individuals in the 20-to-29 age group and that 48% of
all accidents happen to workers during their first year on the
job.
Summary
32One of HRM’s major challenges is the legal constraints
imposed by the government. HR and line managers need to
understand legal requirements and prohibitions to manage in
ways that are financially and ethically sound, and in so doing
create a competitive advantage.
Copyright © 2016 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without
the prior written consent of McGraw-Hill Education.
Viewing employees as a source of competitive advantage results
in dealing with them in ways that are ethical and legal as well
as providing them with a safe workplace. An organization’s
legal environment—especially the laws regarding equal
employment opportunity and safety—has a particularly strong
effect on its HRM function. HRM is concerned with the
management of people, and government is concerned with
protecting individuals. One of HRM’s major challenges is
within the legal constraints imposed by the government. Given
the multimillion-dollar settlements resulting from violations of
EEO laws (and the moral requirement to treat people fairly
regardless of their sex or race) as well as the penalties for
violating OSHA, HR and line managers need to understand legal
requirements and prohibitions in order to manage their
businesses in ways that are sound, both financially and
ethically. Organizations that do so effectively have a
competitive advantage.
Critical Thinking Assignment #____
Equal Opportunity Issues
Your Name
Management 320
Professor Dennis Kimble
Date
Abstract
The key to a successful business is having the right people, in
the right places, at the right time. This is all a function of
Human Resource Management and solid recruitment tools.
These recruitment tools range from posting advertisements in
newspapers, electronic recruiting, and professional recruiters.
They are all good tools, but which tool you use depends on the
audience you are trying to reach. Therefore, each open position
within a company requires a thought-out recruitment plan.
Adapting recruitment tools to fit the position and audience is an
important part of recruiting. You will also need to be prepared
for any potential problems with recruiting tools and know how
to overcome them.
Critical Thinking Assignment # 1 - Week 2 (25 points)
Equal Opportunity: Major HR Laws Affecting Equal
Opportunity
Directions: For this exercise you are acting as a Human
Resource Professional. Applying your knowledge of current
HR laws, the text, and other sources: (1) examine each of the
following scenarios, (2) determine which law potentially is
being violated and (3) describe what actions you would take as
the HR manager.
NOTE: This assignment must include a cover page, opening
abstract, a maximum of three pages of text and a reference page
including text citations. The write-up for each of the five
separate scenarios should be presented in a business format.
Please edit and proofread the final paper you are presenting.
This assignment must have an APA format cover sheet and
reference page along with in text citations. The only part of the
paper which does NOT have to be APA format is your write up
of answers. You can simply type Scenario 1: Scenario 2: etc.
Scenario 1: Adam, an African American employee in your
retail operation, has filed a complaint with Human Resources
indicating that several white coworkers, including two
supervisors, are harassing him because of his race. He alleges
that they call him racist names. He also indicates that his
supervisor refuses to allow him to work overtime, preferring to
give overtime opportunities to white employees.
Adam is a solid associate with no attendance issues, and he’s
always very helpful to customers. After reviewing the overtime
log, you discover that each of his coworkers has averaged five
hours of overtime per week.
Scenario 2: you are the HR manager for a regional construction
firm based in Atlanta, Georgia. In most cases, you create ads
seeking temporary construction work in various cities where
projects exist. However, occasionally site supervisors place
their own ads in local papers. After three phone calls from
women in Tampa, Florida, objecting to a recent ad placed in
that city’s newspaper, you conduct an investigation. You
discover the ad placed by the Tampa, Florida site supervisor
reads, “Young men wanted for construction in the Tampa area.”
Scenario 3: On a weekly basis, you hold meetings with hiring
managers to review recently submitted resumes and
applications. These meetings determine which candidates to
bring in for an interview. One hiring manager, after reviewing
a resume you handed him says, “I’m not interested in this one.”
You ask him why, and he explains, “He has some personal
information on here, and he’s indicated he was born in Mexico.”
You remind the hiring manager that the candidate has 10 years’
experience and an MBA from a top ranked school. So far, it is
the best resume you’ve seen for this particular position. The
hiring manager responds, “So? I don’t want to take a chance
that the wetback is illegal in this country.”
Scenario 4: Tiffany, an associate on the production line for
assembling mechanical pencils, is six months’ pregnant. You
have discovered that her supervisor has required Tiffany to
work light duty jobs in the production office, which means she
is ineligible for the incentive program. This means a potential
loss to Tiffany of approximately $60 per week extra in incentive
pay. When you asked the supervisor about the situation, he
replied, “Are you kidding? She is 6 months pregnant. She
could get hurt or something might happen to her baby. As an Hr
manager, aren’t you concerned about things like that?”
Scenario 5: You are the HR manager for a national consumer-
goods manufacturer with four plants spread across the country
and a corporate office in Cincinnati, Ohio. Each plant has a
full-time cost analyst who keeps tabs on production expenses,
efficiencies, and so on. The best cost analyst, Jennifer (38
years old), is located at the LA office facility. She has been
extremely successful in reducing overhead costs and has started
several initiatives that have gone company-wide in significantly
reducing costs. An opening for cost manager, based in
Cincinnati, has emerged, and the company is conducting a
national search to fill this position, which will oversee all four
cost analysts. Jennifer has asked to be considered. The VP of
finance, to whom the cost manager position will report, does not
wish to consider Jennifer. He points out that she has multiple
sclerosis and, since she now has to use a walker or crutches to
get around, her condition will only worsen. He feels that even
though she is the most qualified candidate, he is uncertain how
long she’ll be physically able of performing the essential
functions of the job.
Title Page - Page 1
Executive Summary - Page 2
Two paragraphs that summarizes your paper for the reader.
Pages 3-5 (Maximum 3 pages of text)
For this exercise you can format the actions as follows:
Scenario 1
Discrimination Law Potentially Violated - Title VII of the Civil
Rights Act of 1964
HR Action - Racial Harassment is a very serious charge. I
would listen to Adam and let him know this would be addressed
in a very thorough manner. I would then begin an investigation
.......
Scenario 2
Discrimination Law Potentially Violated -
HR Action -

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Chapter 3 The Legal Environment Equal Employment Op.docx

  • 1. Chapter 3 The Legal Environment Equal Employment Opportunity and Safety Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 3 presents an overview of the U.S. legal system, noting the different legislative bodies, regulatory agencies, and judicial bodies that determine the legality of certain HRM practices. It discusses the major laws and executive orders that govern these practices. The legal environment, particularly the laws affecting the management of people, is one of several environmental factors affect an organization’s HRM function. Managers often want a list of “dos and don’ts” that will keep them out of legal trouble. They rely on rules such as “Don’t ever ask a female applicant if she is married” without understanding the “why” behind these rules. Clearly, certain practices are illegal or inadvisable, and this chapter will provide valuable tips for avoiding discrimination lawsuits. However, such lists are not compatible with a strategic approach to HRM and are simply mechanical reactions to the situations. Our goal is to provide an understanding of how the legislative, regulatory, and judicial systems work to define equal employment opportunity law to be better prepared to manage
  • 2. people within the limits imposed by the legal system. Doing so effectively is a source of competitive advantage. Doing so ineffectively results in competitive disadvantage. Rather than viewing the legal system as a constraint, firms that embrace the concept of diversity can often find that they are able to leverage the differences among people as a tremendous competitive tool. Learning Objectives LO 3-1 Identify the three branches of government and the role each plays influencing the legal environment of human resource management. LO 3-2 List the major federal laws that require equal employment opportunity and the protections provided by each of these laws. LO 3-3 Discuss the roles, responsibilities, and requirements of the federal agencies responsible for enforcing equal employment opportunity laws. LO 3-4 Identify the three theories of discrimination under Title VII of the Civil Rights Act and apply these theories to different discrimination situations. LO 3-5 Identify behavior that constitutes sexual harassment, and list things that an organization can do to eliminate or minimize it. LO 3-6 Discuss the legal issues involved with preferential treatment programs. LO 3-7 Identify the major provisions of the Occupational Safety and Health Act (1970) and the rights of employees that are guaranteed by this act. 2 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 3. First we’ll review an overview of the U.S. legal system, noting the different legislative bodies, regulatory agencies, and judicial bodies that determine the legality of certain HRM practices. We then discuss the major laws and executive orders that govern these practices. After reading Chapter 3, you should be able to: Identify the three branches of government and the role each plays in influencing the legal environment of HRM. List the major federal laws that require equal employment opportunity and the protections provided by each of these laws. Discuss the roles, responsibilities, and requirements of the federal agencies responsible for enforcing equal employment opportunity laws. Identify the three theories of discrimination under Title VII of the Civil Rights Act and apply these theories to different discrimination situations. 5. Discuss the legal issues involved with preferential treatment programs. 6. Identify behavior that constitutes sexual harassment and list things an organization can do to eliminate or minimize it. 7. Identify the major provisions of the Occupational Safety and Health Act (1970) and the rights of employees that are guaranteed by this act. Our chapter goal is to gain an understanding of how the legislative, regulatory, and judicial systems work to define equal employment opportunity law. U.S. Legal System Three branches Legislative Branch House of Representatives Senate Executive Branch President Regulatory Agencies
  • 4. Legislative Branch U.S. District Courts U.S. Courts of Appeals Supreme Court 3 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The U.S. Constitution sets forth the foundation of our system. It established three major governing bodies: the legislative, executive, and judicial branches. The legislative branch of the federal government consists of the House of Representatives and the Senate. These bodies enact laws that govern many HR activities. The executive branch consists of the President of the United States and regulatory agencies the president oversees. Although the legislative branch passes the laws, the executive branch affects these laws in many ways. First, the president can propose bills to Congress that, if passed, would become laws. Second, the president has the power to veto any law passed by Congress, thus ensuring that few laws are passed without presidential approval—which allows the president to influence how laws are written. Third, the regulatory agencies, under the authority of the president, have responsibility for enforcing the laws. Thus, a president can influence what types of violations are pursued. Fourth, the president can issue executive orders, which sometimes regulate the activities of organizations that have contracts with the federal government. Finally, the president appoints all the judges in the federal judicial system, subject to approval from the legislative branch. This affects the interpretation of many laws.
  • 5. The judicial branch consists of the federal court system, which is made up of three levels. The first level consists of the U.S. District Courts and quasi-judicial administrative agencies. The district courts hear cases involving alleged violations of federal laws. Quasi-judicial agencies, such as the National Labor Relations Board (or NLRB, which is actually an arm of the executive branch, but serves a judicial function), hear cases regarding their particular jurisdictions (in the NLRB’s case, disputes between unions and management). If neither party to a suit is satisfied with the decision of the court at this level, the parties can appeal the decision to the U.S. Courts of Appeals. These courts were originally set up to ease the Supreme Court’s caseload, so appeals generally go from the federal trial level to one of the 13 appellate courts before they can be heard by the highest level, the Supreme Court. The Supreme Court must grant certiorari before hearing an appealed case. However, this is not usually granted unless two appellate courts have come to differing decisions on the same point of law or if the case deals with an important interpretation of constitutional law. The Supreme Court serves as the court of final appeal. Decisions made by the Supreme Court are binding; they can be overturned only through legislation. 3 Equal Employment Opportunity (EEO) Equal Employment Opportunity is the government's attempt to ensure that all individuals have an equal chance for employment, regardless of race, color, religion, sex or national origin 413th Amendment Abolished Slavery14th Amendment Provides equal protection for all citizens and requires due process in state action
  • 6. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4 Equal employment opportunity refers to the government's attempt to ensure that all individuals have an equal chance for employment, regardless of race, color, religion, sex, or national origin (see Table 3.1 in the text for a summary of EEO laws). Constitutional Amendments: Thirteenth Amendment of the Constitution abolished slavery in the United States. The Reconstruction Civil Rights Acts were attempts to further this goal. Fourteenth Amendment forbids the state to take life, liberty, or property without due process of law and prevents the states from denying the equal protections of the law. Congressional Legislation Civil Rights Acts (1866 and 1871)Equal Pay Act of 1963Title VII of the Civil Rights Act of 1964Age Discrimination in Employment Act of 1967Vocational Rehabilitation Act of 1973Vietnam Era Veteran’s Readjustment Act of 1974Pregnancy Discrimination ActCivil Rights Act of 1991Americans with Disabilities Act of 1990 5 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The Civil Rights Act passed in 1866 was later broken into two statutes. Section 1982 granted all persons the same property rights as white citizens. Section 1981 granted other rights,
  • 7. including the right to enter into and enforce contracts. Courts have interpreted Section 1981 as granting individuals the right to make and enforce employment contracts. Equal Pay Act of 1963 - requires that men and women in the same organization who are doing equal work must be paid equally. Covers employers engaged in interstate commerce Title VII of the Civil Rights Act of 1964 - makes it illegal for an employer to "fail or refuse to hire or discharge any individual because of the individual's race, color, religion, sex, or national origin. Title VII states that it is illegal for an employer to “(1) fail or refuse to hire or discharge any individual, or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment because of such individual’s race, color, religion, sex, or national origin, or (2) to limit, segregate, or classify his employees or applicants for employment in any way that would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee because of such individual’s race, color, religion, sex, or national origin.” The act applies to organizations with 15 or more employees working 20 or more weeks a year that are involved in interstate commerce, as well as state and local governments, employment agencies, and labor organizations. Age Discrimination in Employment Act of 1967 - prohibits discrimination against employees over the age of 40. Covers employers with 15 or more employees working 20 or more weeks per year; labor unions; employment agencies; federal government. Vocational Rehabilitation Act of 1973 - covers federal contractors and requires them to engage in affirmative action for disabled individuals.
  • 8. Disability According to EEOC, a disability is a physical or mental impairment that “substantially limits one or more major life activity; a record or past history of such an impairment; and/or being ‘regarded as’ having a disability by an employer whether you have one or not, usually in terms or hiring, firing or demotion.” 6 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 6 A disability is defined as a physical or mental impairment that “substantially limits one or more major life activity; a record or past history of such an impairment; and/or being ‘regarded as’ having a disability by an employer whether you have one or not, usually in terms or hiring, firing or demotion.” A person is considered disabled not only if he or she cannot DO something but just because he or she has a medical condition whether or not it impairs functioning. Executive Orders Executive Order 11478 Government employment policies based on merit and fitness. Executive Order 11246 Prohibits government contractors from discrimination. 7 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 9. Executive Orders are directives issued and amended unilaterally by the president. Two affect HRM practice: Executive Order 11246 Requires affirmative action in hiring women and minorities It covers Federal contractors and subcontractors with contracts greater than $10,000 Executive Order 11478 Requires the federal government to base all its employment policies on merit and fitness and specifies that race, color, sex, religion, and national origin should not be considered. 7 Enforcement of EEO Two agencies responsible for enforcement of these laws and executive orders: Equal Employment Opportunity Commission Office of Federal Contract Compliance Programs 8 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Equal employment opportunity (EEO) refers to the government’s attempt to ensure that all individuals have an equal chance for employment, regardless of race, color, religion, sex, age, disability, or national origin. Two agencies responsible for the enforcement of these laws and executive orders: Equal Employment Opportunity Commission (EEOC) is a division of the Department of Justice responsible for enforcing most of the EEO laws.
  • 10. The Office of Federal Contract Compliance Programs (OFCCP) is responsible for enforcing executive orders that cover companies that have federal government contracts. 8 Lilly Ledbetter Fair Pay Act Congress passed the act specifying that an “illegal act” occurs when: a discriminatory compensation decision is adopted; an employee becomes subject to the decision; or an employee is affected by it application, including each time compensation is paid. 9 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 9 Lilly Ledbetter Fair Pay Act - Congress passed the act specifying that an “illegal act” occurs when (1) a discriminatory compensation decision is adopted; (2) an employee becomes subject to the decision; or (3) an employee is affected by it application, including each time compensation is paid. Three Major Responsibilities of EEOC Investigate and resolve discrimination complaints. Gather information. Issue guidelines. 10 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 11. EEOC has three major responsibilities: 1. Investigation and Resolution—After filing a complaint, EEOC has 60 days to investigate. Dismissal or reconciliation are the two possible outcomes. The complainant may sue in federal court if not satisfied. 2. Information Gathering—EEOC monitors hiring practices by reviewing EEO‑1 reports filed annually by firms. EEOC also plays a role in monitoring the hiring practices of organizations. Each year organizations with 100 or more employees must file a report (EEO-1) with EEOC that provides number of women and minorities employed in nine different job categories. EEOC analyzes these reports to identify patterns of discrimination that can then be attacked through class-action suits. Issuance of Guidelines—EEOC determines and issues guidelines that help employers comply with law. If EEOC cannot come to an agreement with the organization, it has two options. First, it can issue a “right to sue” letter to the alleged victim, which certifies that the agency has investigated and found validity in the victim’s allegations. Second, although less likely, EEOC may aid the alleged victim in bringing suit in federal court. 10 Office of Federal Contract Compliance Programs Three Components Utilization Analysis Goals & Timetables Action Steps
  • 12. 11 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. There are three components of OFCCP: Utilization analysis compares the race, sex, and ethnic composition of the employer's workforce with that of the available labor supply. The employer must develop specific goals and timetables for achieving balance in the workforce to specify percentage of women and minorities that an employer seeks, and date by which that percentage is to be attained. Employers must develop a list of action steps, which are the written affirmative plan that specifies what an employer plans to do to reduce underutilization of protected groups. OFCCP annually audits government contractors to ensure that they actively pursue the goals in their plans. These audits consist of (1) examining the company’s affirmative action plan and (2) conducting on-site visits to examine how individual employees perceive the company’s affirmative action policies. If the OFCCP finds that the contractors or subcontractors are not complying with the executive order, then its representatives may notify the EEOC (if there is evidence that Title VII has been violated), advise the Department of Justice to institute criminal proceedings, request that the Secretary of Labor cancel or suspend any current contracts, and forbid the firm from bidding on future contracts. This last penalty, called debarment, is the OFCCP’s most potent weapon. 11
  • 13. Three Types of Discrimination 12 1. Disparate Treatment 2. Disparate Impact 3. Reasonable Accommodation Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Legal scholars have identified three theories of discrimination: disparate treatment, disparate impact, and reasonable accommodation. A comparison of the theories of discrimination shown next in Table 3.3. 12 Disparate Treatment Disparate treatment: exists when individuals in similar situations are treated differently based upon race, color, religion, sex, national origin, age, or disability status. Bona fide occupational qualification (BFOQ): is a job qualification based on race, sex, religion, etc. that an employer asserts is a necessary qualification for the job. UAW v. Johnson Controls, Inc. McDonnell Douglas Corp. v. Green 13 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Disparate treatment exists when individuals in similar situations
  • 14. are treated differently based upon race, color, religion, sex, national origin, age, or disability status. Whenever individuals are treated differently because of their race, sex, or the like, and there is an actual intent to treat them differently; the plaintiff must prove that there was a discriminatory motive—that is, that the employer intended to discriminate. Bona fide occupational qualifications (BFOQ) - Characteristic that is necessary, rather than preferred, for a job. UAW v. Johnson Controls, Inc., illustrates the difficulty in using a BFOQ as a defense. Johnson Controls, a manufacturer of car batteries, had instituted a “fetal protection” policy that excluded women of childbearing age from a number of jobs in which they would be exposed to lead, which can cause birth defects in children. The company argued that sex was a BFOQ essential to maintaining a safe workplace. The Supreme Court did not uphold the company’s policy, arguing that BFOQs are limited to policies that are directly related to a worker’s ability to do the job. McDonnell Douglas Corp. v. Green delineated the four criteria for a prima facie case of discrimination. 13 The Plaintiff’s Burden Plaintiff has the burden of proving that the defendant committed an illegal act; the idea of a “prima facie” case. Plaintiff meets prima facie burden by showing four things: Plaintiff belongs to a protected group. Plaintiff applied for and was qualified for the job. Despite possessing qualifications, plaintiff was rejected. After plaintiff was rejected, position remained open and employer continued to seek applicants with similar qualifications, or position was filled by someone with similar qualifications. 14 Copyright © 2016 McGraw-Hill Education. All rights reserved.
  • 15. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Although these four elements may seem easy to prove, the court tries to rule out the most obvious reasons for rejecting the plaintiff’s claim (for example, the plaintiff did not apply or was not qualified, or the position was already filled or had been eliminated). If these alternative explanations are ruled out, the court assumes that the hiring decision was based on a discriminatory motive. Once the plaintiff has made the prima facie case for discrimination, the burden shifts to the defendant. The burden is different depending on whether the prima facie case presents only circumstantial evidence (there is no direct evidence of discrimination such as a formal policy to discriminate, but rather discriminatory intent must be inferred) or direct evidence (a formal policy of discrimination for some perceived legitimate reason). In cases of circumstantial evidence, the defendant simply must produce a legitimate, nondiscriminatory reason, such as that, although the plaintiff was qualified, the individual hired was more qualified. 14 Disparate Impact Occurs when a neutral employment practice disproportionately excludes a protected group from employment opportunities Four-fifths rule Standard deviation rule Wards Cove Packing Co. v. Antonio Griggs vs. Duke Power 15 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without
  • 16. the prior written consent of McGraw-Hill Education. Disparate impact occurs when a facially neutral employment practice disproportionately excludes a protected group from employment opportunities. Four-fifths rule - a test has disparate impact if the hiring rate for the minority group is less than four-fifths (80 percent) of the hiring rate for the majority group. Standard deviation rule - uses actual probability distributions to determine adverse impact. -- The Wards Cove Packing Co. v. Antonio case involved a statistical analysis of utilization rates in cannery and noncannery jobs (pay rates for the types of jobs were quite different). -- In Griggs v. Duke Power, it was shown that the employer required either a high school diploma or passing scores on two nationally developed tests. However, the company had not studied the relationship of these selection devices to ability to do the job. Employees already on the job without high school degrees were performing satisfactorily. Thus, Duke Power lost the case. 15 Pattern and Practice Plaintiffs attempt to show three things in class action pattern and practice lawsuits: Statistical disparities between composition of some group within the company compared to some other relevant group Individual acts of intentional discrimination that suggest statistical disparity is a function of the larger culture Promotion and/or pay procedures leave too much discretion to managers, providing the avenue through which unconscious
  • 17. biases can play a part 16 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Plaintiffs attempt to show three things in showing class action pattern and practice lawsuits: Statistical disparities between the composition of some group within the company compared to some other relevant group Plaintiff tries to show individual acts of intentional discrimination that suggest that the statistical disparity is a function of the larger culture. Plaintiff usually tries to make the case that the promotion and/or pay procedures leave too much discretion to managers, providing the avenue through which their unconscious biases can play a part. Reasonable Accommodation Making facilities readily accessible to and usable by individuals with disabilities Places special obligation on employer to affirmatively do something to accommodate an individual’s disability or religion 17 Copyright © 2016 McGraw-Hill Education. All rights reserved.
  • 18. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Reasonable Accommodation - places a special obligation on an employer to affirmatively do something to accommodate an individual’s disability or religion. Reasonable accommodation is making facilities readily accessible to and usable by individuals with disabilities. 17 Religion and Accommodation Title VII forbids discrimination on the basis of religion just like race or sex. Religion also receives special treatment requiring employers to exercise an affirmative duty to accommodate individuals’ religious beliefs and practices. 18 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 18 The number of religious discrimination charges has consistently increased over the past few years. Individuals who hold strong religious beliefs find that some observations and practices of their religion conflict with work duties. Although Title VII forbids discrimination on the basis of religion just like race or sex, religion also receives special treatment requiring employers to exercise an affirmative duty to accommodate individuals’ religious beliefs and practices. In cases of religious discrimination, an employee’s burden is to demonstrate that he
  • 19. or she has a legitimate religious belief and provided the employer with notice of the need to accommodate the religious practice, and that adverse consequences occurred due to the employer’s failure to accommodate. In such cases, the employer’s major defense is to assert that to accommodate the employee would require an undue hardship. Examples of reasonably accommodating a person’s religious obligations might include redesigning work schedules (most often accommodating those who cannot work on their Sabbath), providing alternative testing dates for applicants, not requiring union membership and/or allowing payment of “charitable contributions” in lieu of union dues, or altering certain dress or grooming requirements. Although an employer is required to make a reasonable accommodation, it need not be the one that is offered by the employee. Disability and Accommodation Readily-accessible facilities Job restructuring Reassignment Alternative testing formats Readers or reading assistance technology Interpreters Allow employees to provide own accommodation 19 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Disability and Accommodation - Employers are not only to refrain from discrimination (ADA) but they are also obligated to
  • 20. take affirmative steps to accommodate individuals who are protected under the act. Under disability claims, the plaintiff must show that she or he is a qualified applicant with a disability and that adverse action was taken by a covered entity. The employer’s defense then depends on whether the decision was made without regard to the disability or in light of the disability. Most accommodations are inexpensive. A study by Sears Roebuck & Co. found that 69% of all accommodations cost nothing, 29% cost less than $1,000, and only 3% cost more than $1,000.Examples of reasonable accommodation with regard to disabilities include readily accessible facilities, job restructuring, reassignment, alternative testing formats, readers, additional time, interpreters, or reading assistance technology own accommodation etc. 19 Retaliation for Participation and Opposition 20 Title VII states that employers cannot retaliate against employees for either "opposing" a perceived illegal employment practice or "participating in a proceeding” related to an alleged illegal employment practice. Opposition refers to expressing to someone through proper channels that you believe that an illegal employment act has taken place or is taking place. 20 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 21. Title VII states that employers cannot retaliate against employees for either "opposing" a perceived illegal employment practice or "participating in a proceeding” related to an alleged illegal employment practice. However, employees do not have an unlimited right to talk about how racist or sexist their employers are. The courts tend to frown on employees whose activities result in a poor public image for the company unless those employees attempted to use the organization’s internal channels. Employees do not have an unlimited right to talk about how racist or sexist their employers are. Opposition refers to expressing to someone through proper channels that you believe that an illegal employment act has taken place or is taking place. Participation refers to actually testifying in an investigation, hearing, or court proceeding regarding an illegal employment act. The purpose of this provision is to protect employees from employers’ threats and other forms of intimidation aimed at discouraging the employees from bringing to light acts they believe to be illegal. 20 Diversity and EEO Issues Sexual harassment Affirmative action and reverse discrimination Outcomes of Americans with Disabilities Act 21 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Summary Heading. Text. Heading. Text.
  • 22. Heading. Text. Heading. Text. Use this space for overall reminders or special tips linked to the slide or occasion. Simply select this text and replace it with your own reminders. Organizational demography is changing, and therefore issues regarding diversity are increasingly important. The important issue are: sexual harassment, affirmative action and reverse discrimination, and outcomes of American’s with Disabilities Act. EEOC Definition of Sexual Harassment Unwelcome sexual advances, requests for sexual favors, and other verbal or physical contact of a sexual nature constitute sexual harassment when: 1. Submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment 2. Submission to or rejection of such conduct by an individual is used as the basis of employment decisions affecting such individual, or 3. Such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment. 22 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 22 The EEOC definition of sexual harassment - unwelcome sexual advances, requests for sexual favors, and other verbal or physical contact of a sexual nature constitute sexual harassment when: 1. Submission to such conduct is made either explicitly or
  • 23. implicitly a term or condition of an individual’s employment, 2. Submission to or rejection of such conduct by an individual is used as the basis of employment decisions affecting such individual, or 3. Such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment. Sexual Harassment 23 Quid Pro Quo Bundy v. Jackson Hostile Working Environment 23 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Quid pro quo harassment occurs when some type of benefit or punishment is made contingent upon the employee submitting to sexual advances. --The Bundy v. Jackson case facts showed that the plaintiff repeatedly received sexual propositions from her fellow employees and supervisor. She rejected these advances and was eventually passed over for promotion without reason. A hostile working environment occurs when someone's behavior in the workplace creates an environment that makes it difficult for someone of a particular sex to work. 23
  • 24. Three Conditions for Sexual Harassment Cases Plaintiff cannot have "invited or incited" the advances Harassment must have been severe Court must determine the liability of the organization for actions of its employees 24 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Three critical conditions for sexual harassment cases: The plaintiff cannot have "invited or incited" the advances Harassment must have been severe The court must determine the liability of the organization for actions of its employees Four Steps to Ensure a Workplace Free of Sexual Harassment Policy Statement Training Reporting mechanism Prompt disciplinary action 25
  • 25. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. To ensure a workplace free from sexual harassment, organizations can follow some important steps. First, the organization can develop a policy statement that makes it very clear that sexual harassment will not be tolerated in the workplace. Second, all employees, new and old, can be trained to identify inappropriate workplace behavior. Third, the organization can develop a mechanism for reporting sexual harassment that encourages people to speak out. Fourth, management can prepare to take prompt disciplinary action against those who commit sexual harassment as well as appropriate action to protect the victims of sexual harassment. 25 Affirmative Action and Reverse Discrimination Affirmative Action was conceived as a way of taking extra effort to attract and retain minority employees. Imposed quota program Debate over affirmative action continues to evoke attention 26 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Affirmative Action was conceived of as a way of taking extra effort to attract and retain minority employees. Imposed quota programs are negotiated with the EEOC and hold a certain number of positions for minorities or women. The entire debate over affirmative action continues to evoke
  • 26. attention. Many people consider quotas or preferential treatment as reverse discrimination. Although most individuals support the idea of diversity, few argue for the kinds of quotas that have to some extent resulted from the present legal climate. 26 Americans with Disabilities Act (ADA) Under ADA, a firm must make "reasonable accommodation” to a physically or mentally disabled individual unless doing so would impose "undue hardship.” Consequences of ADA: Increased litigation Cases being filed do not reflect Congressional intent Act was passed to protect people with major disabilities The law has not resulted in a major increase in the proportion of people with disabilities who are working. 27 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Under ADA, a firm must make “reasonable accommodation” to a physically or mentally disabled individual unless doing so would impose “undue hardship.” Consequences of this act: There has been increased litigation. The kinds of cases being filed do not reflect Congressional intent. The act was passed to protect people with major disabilities; however, major disabilities account for less than 4 percent of claims. The law has not resulted in a major increase in the proportion of people with disabilities who are working. The debate continues regarding the effectiveness of the ADA.
  • 27. 27 Employee Safety Employee safety is regulated by both federal and state governments. BP refinery in Texas City, Texas Occupational Safety and Health Act (OSHA) Authorizes federal government to establish and enforce occupational safety and health standards for all places of employment engaging in interstate commerce. General Duty Clause 28 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 28 Employee safety is regulated by both the federal and state governments. employers need to go well beyond the letter of the law and embrace its spirit. In March 2005, officials at the BP refinery in Texas City, Texas, were aware of the fact that some repairs needed to be done on some of the equipment in an octane-boosting processing unit. On March 23, knowing that some of the key alarms were not working, managers authorized a start-up of the unit. The startup resulted in the deadliest petrochemical accident in 15 years, killing 15 people and injuring others. Occupational Safety and Health Act (OSHA) authorizes the federal government to establish and enforce occupational safety and health standards for all places of employment engaging in interstate commerce.
  • 28. --The General duty clause of OSHA states that an employer has an overall obligation to furnish employees with a place of employment free from recognized hazards. Table 3.6 Employee Rights Under OSHAEmployees have the right to:1. Request an inspection.2. Have a representative present at an inspection.3. Have dangerous substances identified.4. Be promptly informed about exposure to hazards and be given access to accurate records regarding exposures.5. Have employer violations posted at the work site. 29 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Under OSHA, employees have a right to: 1. Request an inspection. 2. Have a representative present at an inspection. 3. Have dangerous substances identified. 4. Be promptly informed about exposure to hazards and be given access to accurate records regarding exposures. 5. Have employer violations posted at the work-site. OSHA Inspections, Citations and Penalties OSHA inspections are conducted by compliance officers, specially trained Department of Labor agents. Violation results in a citation to the employer. Criminal and civil penalties can be issued.
  • 29. 30 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. OSHA is responsible for inspecting businesses, applying safety and health standards, and levying fines for violations. OSHA regulations prohibit notifying employers of inspections in advance. OSHA inspections are conducted by specially trained agents of the Department of Labor called compliance officers. If compliance officers believe that a violation has occurred, they issue a citation to the employer specifying the practice or situation that violates the act. Criminal and civil penalties may be assessed for willful violations that kill an employee. OSHA has raised awareness of occupational safety, yet legislation alone cannot solve all the problems of work site safety. Many industrial accidents are a product of unsafe behaviors, not unsafe working conditions. Because conforming to the statute alone does not necessarily guarantee safety, many employers go beyond the letter of the law. 30 Three Components of Safety Awareness Programs Identify Reinforce Promote 31
  • 30. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Safety Awareness Programs attempt to instill symbolic and substantive changes to a safety program. There are three primary components of a safety awareness program: --Identifying and Communicating Job Hazards The job hazard analysis technique breaks jobs down into basic elements that are then rated for their potential for harm. Technic of Operations Review (TOR) focuses on past accidents and their causes. --Reinforcing Safe Practices --Promoting Safety Internationally One common technique for reinforcing safe practices is implementing a safety incentive program to reward workers for their support and commitment to safety goals. Research by the National Safety Council indicates that 40% of all accidents happen to individuals in the 20-to-29 age group and that 48% of all accidents happen to workers during their first year on the job. Summary 32One of HRM’s major challenges is the legal constraints imposed by the government. HR and line managers need to understand legal requirements and prohibitions to manage in ways that are financially and ethically sound, and in so doing create a competitive advantage. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 31. Viewing employees as a source of competitive advantage results in dealing with them in ways that are ethical and legal as well as providing them with a safe workplace. An organization’s legal environment—especially the laws regarding equal employment opportunity and safety—has a particularly strong effect on its HRM function. HRM is concerned with the management of people, and government is concerned with protecting individuals. One of HRM’s major challenges is within the legal constraints imposed by the government. Given the multimillion-dollar settlements resulting from violations of EEO laws (and the moral requirement to treat people fairly regardless of their sex or race) as well as the penalties for violating OSHA, HR and line managers need to understand legal requirements and prohibitions in order to manage their businesses in ways that are sound, both financially and ethically. Organizations that do so effectively have a competitive advantage. Critical Thinking Assignment #____ Equal Opportunity Issues Your Name Management 320 Professor Dennis Kimble Date
  • 32. Abstract The key to a successful business is having the right people, in the right places, at the right time. This is all a function of Human Resource Management and solid recruitment tools. These recruitment tools range from posting advertisements in newspapers, electronic recruiting, and professional recruiters. They are all good tools, but which tool you use depends on the audience you are trying to reach. Therefore, each open position within a company requires a thought-out recruitment plan. Adapting recruitment tools to fit the position and audience is an important part of recruiting. You will also need to be prepared for any potential problems with recruiting tools and know how to overcome them. Critical Thinking Assignment # 1 - Week 2 (25 points) Equal Opportunity: Major HR Laws Affecting Equal Opportunity Directions: For this exercise you are acting as a Human Resource Professional. Applying your knowledge of current HR laws, the text, and other sources: (1) examine each of the following scenarios, (2) determine which law potentially is being violated and (3) describe what actions you would take as the HR manager.
  • 33. NOTE: This assignment must include a cover page, opening abstract, a maximum of three pages of text and a reference page including text citations. The write-up for each of the five separate scenarios should be presented in a business format. Please edit and proofread the final paper you are presenting. This assignment must have an APA format cover sheet and reference page along with in text citations. The only part of the paper which does NOT have to be APA format is your write up of answers. You can simply type Scenario 1: Scenario 2: etc. Scenario 1: Adam, an African American employee in your retail operation, has filed a complaint with Human Resources indicating that several white coworkers, including two supervisors, are harassing him because of his race. He alleges that they call him racist names. He also indicates that his supervisor refuses to allow him to work overtime, preferring to give overtime opportunities to white employees. Adam is a solid associate with no attendance issues, and he’s always very helpful to customers. After reviewing the overtime log, you discover that each of his coworkers has averaged five hours of overtime per week. Scenario 2: you are the HR manager for a regional construction firm based in Atlanta, Georgia. In most cases, you create ads seeking temporary construction work in various cities where projects exist. However, occasionally site supervisors place their own ads in local papers. After three phone calls from women in Tampa, Florida, objecting to a recent ad placed in that city’s newspaper, you conduct an investigation. You discover the ad placed by the Tampa, Florida site supervisor reads, “Young men wanted for construction in the Tampa area.” Scenario 3: On a weekly basis, you hold meetings with hiring
  • 34. managers to review recently submitted resumes and applications. These meetings determine which candidates to bring in for an interview. One hiring manager, after reviewing a resume you handed him says, “I’m not interested in this one.” You ask him why, and he explains, “He has some personal information on here, and he’s indicated he was born in Mexico.” You remind the hiring manager that the candidate has 10 years’ experience and an MBA from a top ranked school. So far, it is the best resume you’ve seen for this particular position. The hiring manager responds, “So? I don’t want to take a chance that the wetback is illegal in this country.” Scenario 4: Tiffany, an associate on the production line for assembling mechanical pencils, is six months’ pregnant. You have discovered that her supervisor has required Tiffany to work light duty jobs in the production office, which means she is ineligible for the incentive program. This means a potential loss to Tiffany of approximately $60 per week extra in incentive pay. When you asked the supervisor about the situation, he replied, “Are you kidding? She is 6 months pregnant. She could get hurt or something might happen to her baby. As an Hr manager, aren’t you concerned about things like that?” Scenario 5: You are the HR manager for a national consumer- goods manufacturer with four plants spread across the country and a corporate office in Cincinnati, Ohio. Each plant has a full-time cost analyst who keeps tabs on production expenses, efficiencies, and so on. The best cost analyst, Jennifer (38 years old), is located at the LA office facility. She has been extremely successful in reducing overhead costs and has started several initiatives that have gone company-wide in significantly reducing costs. An opening for cost manager, based in Cincinnati, has emerged, and the company is conducting a national search to fill this position, which will oversee all four cost analysts. Jennifer has asked to be considered. The VP of finance, to whom the cost manager position will report, does not
  • 35. wish to consider Jennifer. He points out that she has multiple sclerosis and, since she now has to use a walker or crutches to get around, her condition will only worsen. He feels that even though she is the most qualified candidate, he is uncertain how long she’ll be physically able of performing the essential functions of the job. Title Page - Page 1 Executive Summary - Page 2 Two paragraphs that summarizes your paper for the reader. Pages 3-5 (Maximum 3 pages of text) For this exercise you can format the actions as follows: Scenario 1 Discrimination Law Potentially Violated - Title VII of the Civil Rights Act of 1964 HR Action - Racial Harassment is a very serious charge. I would listen to Adam and let him know this would be addressed in a very thorough manner. I would then begin an investigation .......
  • 36. Scenario 2 Discrimination Law Potentially Violated - HR Action -