EMPLOYMENT LAW Critical Critical Strategic Strategic Issue Issue •• Significant Significant impact impact on on cost cost structure structure –– Establishment Establishment&&maintenance maintenanceofofinternal internal mechanisms mechanisms –– Violations Violationscan canresult resultininsignificant significantpenalties penalties •• Makes Makes sense sense to to be be an an equal equal opportunity opportunity employer employer –– Avoid Avoidpenalties penaltiesfor forviolations violations –– Hire Hiremost mostqualified qualifiedapplicant applicantfor forjob jobor ortotopromote promote most mostqualified qualifiedindividual individual Employment-at-will Employment-at-will Doctrine Doctrinedeveloped developedas aspart partof ofBritish Britishcommon commonlaw lawwhich whichstates statesthe the employment employmentrelationship relationshipshould shouldbe beaaprivate privatematter matterbetween between employee employeeand andemployers, employers,terminable terminableby byeither eitherpart partatatany anytime timefor forany any reason reasonor orno noreason reasonwhatsoever whatsoever Applies Appliestotothe themajority majorityof ofthe theworkforce workforceininthe theUnited UnitedStates Stateswith withthe the major majorexceptions exceptionsof of 1) 1)aacollective collectivebargaining bargainingagreement agreement 2) 2)an anexpress expresswritten writtencontract contract 3) 3)terms termsof ofimplied impliedcontracts contracts 4) 4)judicially judiciallydetermined determined“public “publicpolicy policyexceptions” exceptions” 5) 5) federal, federal,state stateand andlocal localstatutes statuteswhich whichprohibit prohibitdiscrimination discriminationinin employment employmentagainst againstgiven givenspecified specifiedprotected protectedclasses classes Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Civil Civil Rights RightsAct Act of of 1866 1866 –– Gave Gave all all citizens citizens right right toto enter enter into into contracts contracts –– No No remedies remedies for for unjust unjust treatment treatment were were provided provided •• Civil Civil Rights RightsAct Act of of 1871 1871 –– Gave Gave individuals individuals right right toto sue sue ifif they they felt felt they they had had been been deprived deprived ofof rights rights under under 1866 1866Act Act Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Equal Equal Pay PayAct Act (1963) (1963) –– Prohibits Prohibitswage wagediscrimination discriminationbased basedon ongender genderfor for jobs jobsthat thatrequire requireequal equalskill, skill,effort, effort,&&responsibility responsibility&& are areperformed performedunder undersimilar similarworking workingconditions conditions –– Exceptions Exceptionstotoequal equalpay pay •• Bona Bonafide fideseniority senioritysystems systems •• Quality Qualityof ofjob jobperformance performance(i.e., (i.e.,merit-based merit-basedpay pay systems) systems) •• Quantity Quantityof ofoutput output(i.e., (i.e.,piece-rate piece-ratepay paysystems) systems) •• Factors Factors(contingencies) (contingencies)other otherthan thansex sex(gender) (gender) Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Civil CivilRights RightsAct Act(1964) (1964) Title TitleVII VII –– Title TitleVII VIIprohibits prohibitsdiscrimination discriminationininemployment employmentbased basedon on race, race,color, color,religion, religion,sex, sex,&&national nationalorigin origin –– Covers Coversconditions conditionsofofemployment: employment:hiring, hiring,firing, firing,promotion, promotion, transfer, transfer,compensation, compensation,&&admission admissiontototraining training –– Applies Appliestotoall allprivate privateemployers employerswith with15 15orormore moreemployees, employees, state state&&local localgovernments, governments,educational educationalinstitutions, institutions, employment employmentagencies, agencies,&&unions unions –– Established Established&&Equal EqualEmployment EmploymentOpportunity OpportunityCommission Commission (EEOC) (EEOC)totooversee oversee&&enforce enforceTitle TitleVII VII&&all allother otherfederal federal labor laborlaws laws Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Age Age Discrimination DiscriminationAct Act (1967) (1967) –– Prohibits Prohibitsemployment employmentdiscrimination discriminationagainst against employees employeesage age40 40or orolder older –– Prohibits Prohibitssetting settingofofmandatory mandatoryretirement retirementages ages except exceptinincases casesofofpublic publicsafety safety(e.g., (e.g.,airline airlinepilots) pilots) –– Amended Amended1990 1990by byOlder OlderWorkers WorkersProtection ProtectionAct Act which whichprohibits prohibitsdiscrimination discriminationininprovision provisionofof benefits benefits&&required requiredsigning signingofofage agediscrimination discrimination waivers waiversatatlayoff layoff –– Covers Coversall allemployers employersincluding includingfederal federalgovernment government Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Rehabilitation RehabilitationAct Act(1973) (1973) –– Prohibited Prohibiteddiscrimination discriminationby byfederal federal(but (butnot notprivate) private) contractors contractorsagainst againsthandicapped handicappedapplicants applicantsororemployees employees –– Definition Definitionofofhandicapped handicappedindividuals individuals •• Persons Personswith withphysical physicalor ormental mentalimpairment impairmentthat thatsubstantially substantially limits limitsone oneor ormore moremajor majorlife lifeactivities activities •• Persons Personswith withhistory historyor orrecord recordof ofsuch suchimpairment impairment •• Persons Personsregarded regardedas ashaving havingsuch suchan animpairment impairment –– Handicapped Handicappedindividuals individualsmust mustbe be“otherwise “otherwisequalified” qualified”toto perform perform(with (withreasonable reasonableaccommodation) accommodation)essential essential functions functionsofofjob job(e.g., (e.g.,no noblind blindbus busdrivers) drivers) Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Pregnancy PregnancyDiscrimination DiscriminationAct Act(1978) (1978) –– Prohibits Prohibitsemployers employersfrom fromdiscriminating discriminatingagainst againstpregnant pregnant employees employeesby byrequiring requiringpregnancy pregnancybe betreated treatedas asany anyother other medical medicaldisability disability –– Does Doesnot notrequire requirereinstatement reinstatementofofreturning returningemployee employeetoto same samejob job –– Does Doesnot notallow allowemployer employertotodetermine determinedates datesofofleave leave –– Employer Employercannot cannotrefuse refusetotohire hireororpromote promoteon onbasis basisofof pregnancy pregnancy –– Employer Employercannot cannotprovide providehealth healthplans plansthat thatdo donot notcover cover pregnancy pregnancy Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• American AmericanWith WithDisabilities DisabilitiesAct Act(1990) (1990) –– Prohibits Prohibitsall allemployers employerswith with15 15orormore moreemployees employeesfrom from discriminating discriminatingagainst againstdisabled disabledpersons persons –– Courts Courtshave haveissued issuedambiguous ambiguous&&conflicting conflictingrulings rulingson on “medical “medicalconditions,” conditions,”“major “majorlife lifeactivities,” activities,”&&what whatconstitutes constitutes “disability.” “disability.”Decisions Decisionsmade madeon onaacase-by-case case-by-casebasis basis –– Determination Determinationofof“reasonable “reasonableaccommodation” accommodation” •• Cost Costof ofaccommodation accommodation&&resources resourcesof ofemployer employer •• Nature Natureof ofjob job&&workplace workplacesafety safetyissues issues •• Any Anyrelevant relevantcollective collectivebargaining bargainingprovisions provisions EEOC EEOC Enforcement Enforcement of of Federal Federal Law Law •• Voluntary Voluntary mediation mediation program program –– Designed Designedtotobe befair, fair,impartial, impartial,&&unbiased unbiased –– By Byrefusing refusingmediation, mediation,employers employersmay mayforce force employee employeetotogo gototocourt court –– Litigation Litigation •• IsIstime-consuming time-consuming& &expensive expensivefor foremployer employer& & employee employee •• IsIsdisruptive disruptiveto toemployer’s employer’sworkplace workplace •• May Mayresult resultin inhard hardfeelings feelingstoward towardemployer employer Affirmative Affirmative Action Action •• Affirmative AffirmativeAction ActionPlans Plans –– Require Requireorganizations organizationstotodevelop, develop,implement, implement,&&maintain maintain program programtotomake makespecial specialefforts effortstotoinsure insureworkforce workforceisis representative representativeofofthe thesociety societywhere wherebusiness businessoperates operates –– Required Requiredfor fororganizations organizationswith with100 100ororemployees employeesand andwith with $50,000 $50,000orormore moreininfederal federalcontracts contracts –– Filed Filedwith withDepartment DepartmentofofLabor Labor&&monitored monitoredby byOffice Officeofof Federal FederalContract ContractCompliance Compliance –– Considered Consideredtemporary temporarymeasures measurestotocorrect correct“underutilization” “underutilization” ofofcertain certainprotected protectedclasses classes Affirmative Affirmative Action Action •• Four Fourseparate separatesections sections –– Utilization Utilizationanalysis analysis •• Employer Employeridentifies identifiesemployees employeesby bygender, gender,race, race,ethnicity, ethnicity, religion, religion,physical physicalability, ability,&&any anyother otherprotected protectedclass class –– Availability Availabilityanalysis analysis •• Examines Examinesavailability availabilityfor foremployment employmentof ofall allprotected protectedclasses classes ininimmediate immediaterecruiting recruitingvicinity vicinity –– Identification Identificationofofproblem problemareas areas •• Employer Employernotes notesoverover-&&under-utilization under-utilizationof ofcertain certaingroups groups –– Narrative Narrativestatement statementofofcorrective correctiveaction action •• Detailed Detailedplans planswith withtimetables timetables Sexual Sexual Harassment Harassment •• Supreme Supreme Court Court rulings rulings –– Meritor MeritorSavings SavingsBank Bank •• Sexual Sexualharassment harassmentisisform formof ofsexual sexualdiscrimination discrimination under underTitle TitleVII VII –– Oncale Oncalev.v.Sundowner SundownerOffshore OffshoreServices Services •• Same-sex Same-sexharassment harassmentisisactionable actionableunder underTitle TitleVII VII •• Sexual Sexual harassment harassment isis “an “an individual’s individual’s clear clear rejection rejection of of offensive offensive & & inappropriate inappropriate (‘unwelcome’) (‘unwelcome’) advance” advance” Forms Forms of of Sexual Sexual Harassment Harassment •• Quid Quidpro proquo quo –– Promise Promiseororuse useofofwork-related work-relatedbenefits benefitsororthreats threatstotobargain bargain with withororcoerce coerceindividual individualfor forsexual sexualfavors favors •• Hostile Hostileworking workingenvironment environment –– Presence Presence(perceived (perceivedororactual) actual)ofofoffensive offensiveororthreatening threatening environment environment •• Harassment Harassmentstandards standardsused usedby bycourt court –– ““Reasonable Reasonablewoman” woman”test test –– Pattern Patternofofbehavior behavior(frequency (frequency&&pervasiveness) pervasiveness)ororisolated isolated event/act event/actofofindividual individual –– Response Responseofoforganization organizationtotocomplaint complaint Guidelines Guidelines for for Managing Managing Sexual Sexual Harassment Harassment •• •• •• •• •• •• •• •• Investigate Investigateall allallegations; allegations;ignorance ignorancenot notaadefense defense Conduct Conductthorough thorough& &prompt promptinvestigation investigation Ensure Ensureinvestigator investigatorisisunbiased unbiased& &objective objective Ensure Ensureno noretaliation retaliationtakes takesplace place Treat Treataccused accusedemployee employeefairly fairly Have Haveboth bothparties partiessign signwritten writtenstatements statementsto toprevent prevent“fact” “fact” from fromchanging changing Take Takeprompt promptaction action& &equate equateconsequences consequenceswith withbehavior behavior Have Haveclear, clear,defined definedprocess processfor forinvestigation, investigation,apply apply consistently, consistently,document documenteverything everything Sexual Sexual Harassment Harassment •• Complications Complications abroad abroad –– Many Manycultures culturesdo donot notacknowledge acknowledgesexual sexual harassment harassmentas asworkplace workplaceor orsocietal societalproblem, problem, creating creatingethical ethicaldilemmas dilemmas –– Courts Courtsplace placeresponsibility responsibilityon oncomplainants complainantstoto inform informharassers harassersthat thatadvances advancesor orbehaviors behaviorsare are “unwelcome” “unwelcome” –– Burden Burdenrests restswith withemployer employerofofestablishing, establishing, communicating, communicating,&&implementing implementingclear clearpolicy policy Trends Trends in in Employment Employment Litigation Litigation •• •• •• •• •• •• Blatant Blatantto tosubtle subtlediscrimination discrimination Use Useof ofelectronically electronicallyproduced producedand andstored storedevidence evidence Increasing Increasingcomplaints complaintsof ofemployer employerretaliation retaliation More Moreexpeditious expeditiousemployer employersettlements settlements Use Useof ofemployment employmentpractice practiceliability liabilityinsurance insurance(EPLI) (EPLI) Language Languagerules rulesin inthe theworkplace workplace Reading Reading7.1 7.1 In In Defense Defense of of Preference Preference •• Gap Gapbetween betweeneducational educationalperformance performanceof ofblacks blacks& &whites whites has haspersisted persisted& &deepened deepened •• Gulf Gulfexists existsbetween betweeneducational educational& &occupational occupationalstatus statusof of blacks blacks& &whites, whites,encompassing encompassing –– Wealth Wealth –– Residential Residentialsegregation segregation –– Social Socialrelationships relationships •• Banning Banningpreference preferencewould wouldbe bebad badfor forcountry country –– Preference Preferenceisisno nofinal finalanswer answer –– Elimination Eliminationofofpreference preferenceisisno nofinal finalanswer answer Reading Reading7.1 7.1 In In Defense Defense of of Preference Preference •• We Weare are“two “twonations” nations” –– One Onenation nationcannot cannotbe beexcluded excludedfrom frominstitutions institutionsthat thatconfer confer access accesstotopositions positionsofofgreatest greatestprestige prestige&&power power –– Both Bothnations nationsmust mustparticipate participateininsociety societytotosome somedegree degree •• Many Manydifficult difficultissues issuesremain remain –– What Whatkind? kind? –– To Towhat whatextent? extent? –– How Howlong? long? –– Imposed Imposedby bywhom? whom? –– By Bywhat whatdecision-making decision-makingprocess? process? Reading Reading 7.2 7.2 The The Management Management of of Organizational Organizational Justice Justice Organizational Organizationaljustice justicerefers refersto tothe theextent extentto towhich which employees employeesfeel feelthat thatthey theyare arebeing beingtreated treatedfairly fairlyin in organizations organizations Correlates Correlateswith withgreater greatertrust trustand andcommitment, commitment,improved improvedjob job performance, performance,better bettercitizenship citizenshipbehavior, behavior,improved improved customer customerservice serviceand andsatisfaction satisfactionand andreduced reducedconflict conflict Organizational Organizationaljustice justiceisisaaprocess processwhich whichneeds needsto tobe beactively actively managed managed Reading Reading7.2 7.2 The The Management Management of of Organizational Organizational Justice Justice Components Componentsof ofjustice justice •• •• Distributive Distributivejustice justice––the theappropriateness appropriatenessof ofoutcomes outcomes Procedural Proceduraljustice justice––the theappropriateness appropriatenessof ofallocation allocation processes processes •• Interactional Interactionaljustice justice––the theappropriateness appropriatenessof ofhow how employees employeesare aretreated treatedby bysuperiors superiors Reading Reading7.2 7.2 The The Management Management of of Organization Organization al al Justice Justice Reading Reading7.2 7.2 The The Management Management of of Organizational Organizational Justice Justice Perceptions Perceptionsof ofjustice justiceare areinfluenced influencedby by –– selection selectionprocedures procedures –– compensation compensationand andreward rewardsystems systems –– conflict conflictresolution resolutiontechniques techniques –– downsizing downsizingactivities activities –– performance performancemanagement managementsystems systems ... Anti-Discrimination Anti-Discrimination Laws Laws Family Family& &Medical MedicalLeave LeaveAct Act(1992) (1992) •• State Stateleave leavelaws lawsgreatly greatlycomplicate complicateemployee employeeleave... religion,physical physicalability, ability,&&any anyother otherprotected protectedclass class –– Availability Availabilityanalysis analysis •• Examines Examinesavailability availabilityfor foremployment employmentof... harbingerofoflaws laws adopted adoptedelsewhere elsewhere Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws Americans AmericansWith WithDisabilities DisabilitiesAmendments AmendmentsAct Actof