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Employment Law Basics
Employment-at-Will Doctrine
 No agreement exists defining how long the employment
relationship will last.
 Either the employer or the employee can terminate
employment at any time.
 The employer can terminate with cause or for no cause.
An employer cannot terminate an employee for:
 Refusing to carry out an illegal activity.
 Exercising a legal right.
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For example, filing a workers’ compensation claim.
 Performing
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a legal duty.
For example, serving on jury duty or the army reserve
 Whistleblowing
(reporting the employer’s wrongdoing).
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Agency Law & Unions
Employment law based on “master/servant” relationship.
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The “master” is responsible for the “servant”.
 Vicarious
liability is the imposition of liability on one party for the
wrongs of another.
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The employer is responsible for an employees’ actions done within the
course of employment.
Major legal acts for unions
 Norris-LaGuardia Act:
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Approval granted for the formation and operation of labor unions.
 National
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Labor Relations Act (NLRA):
Established procedures for collective bargaining.
Set up the National Labor Relations Board (NLRB) to enforce union law.
 Fair
Labor Standards Act
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Established child labor laws.
Set the minimum wage.
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Defined a 40-hour workweek and overtime (>40/wk)
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FLSA Overtime Exemptions
 Non-exempt
employees qualify for overtime.
 Exempt employees do not qualify for overtime.
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Executive
Administrative
Professional employees
Outside sales employees
Employees in certain computer-related occupations
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Regulation of HR Management
The Equal Employment Opportunity Commission (EEOC)
is enforces most EEO laws. It investigates and resolves
complaints, gathers information, and issues guidelines.
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Equal Employment Opportunity (EEO)
Equal employment opportunity – the condition in which all
individuals have an equal chance for employment,
regardless of their race, color, religion, sex, age,
disability, or national origin.
Equal Employment Opportunity Commission (EEOC)
 Responsible for enforcing most of the EEO laws.
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Investigates and resolves discrimination complaints
Gathers information
Issues guidelines
Monitors organizations’ hiring practices
Complaints must be filed within 180 days of the incident.
EEOC has 60 days to investigate the complaint.
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Providing for EEO: Avoiding Discrimination
Bona Fide Occupational
Qualification (BFOQ)
Disparate Treatment
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Differing treatment of
individuals based on the
individuals’ race, color, religion,
sex, national origin, age, or
disability status.
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Disparate Impact
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A condition in which
employment practices are
seemingly neutral yet
disproportionately exclude a
protected group from
employment opportunities.
A necessary (not merely
preferred) qualification for
performing a job.
The Supreme Court has ruled
that BFOQ’s are limited to
policies directly related to a
worker’s ability to do the job.
Four-Fifths Rule
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Rule of thumb that finds
evidence of discrimination if an
organization’s hiring rate for a
minority group is less than
four-fifths the hiring rate for the
majority group.
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Providing for EEO: Avoiding Discrimination
Reasonable Accommodation: An employer’s obligation to
do something to enable an otherwise qualified person to
perform a job.
 Companies should recognize needs based on
individuals’ religion or disabilities.
 Employers may need to make such accommodations as
adjusting work schedules or dress codes, making the
workplace more accessible, or restructuring jobs.
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Avoiding Sexual Discrimination
Sexual Harassment: refers to unwelcome sexual advances,
requests for sexual favors, and other verbal or physical
contact of a sexual nature when:
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Submission to such conduct is made explicitly or implicitly a term of
condition of an individual’s employment,
Submission to or rejection of such conduct by an individual is used as
the basis for employment decisions affecting such individual, or
Such conduct has the purpose of effect of unreasonably interfering with
an individual’s work performance or creating an intimidating, hostile, or
offensive working environment.
Organizations can prevent sexual harassment by:
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Developing a policy that defines and forbids it
Training employees to recognize and avoid this behavior
Providing a means for employees to complain and be protected
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Occupational Safety and Health Act
Authorizes the federal government to establish and enforce
occupational safety and health standards for all places of
employment engaging in interstate commerce.
Established the Occupational Safety and Health Administration
(OSHA). Responsible for:
 Inspecting employers without notice
 Applying safety and health standards
 Levying fines for violation
Employees’ rights under the OSH Act:
1. Request an inspection and have a representative present
2. Have dangerous substances identified.
3. Be promptly informed about exposure to hazards and be
given access to accurate records regarding exposure.
4. Have employer violations posted at the work site.
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Employer-Sponsored Safety Programs
Technic of Operations Review
(TOR)
Job Hazard Analysis Technique
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Safety promotion technique
that involves breaking down a
job into basic elements, then
rating each element for its
potential for harm or injury.
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Reinforcing Safe Practices
Promoting Safety Internationally
Run a safety incentive program
to reward workers for their
support of and commitment to
safety goals.
Start by focusing on monthly or
quarterly goals.
Encourage suggestions for
improving safety.
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Method of promoting safety by
determining which specific
element of a job led to a past
accident.
Cultural differences make this
difficult.
Laws, enforcement practices,
and political climates vary from
country to country.
Companies may operate in
countries that are less strict
than in the U.S.
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Affirmative Action
“Those actions appropriate to
overcome the effects of past or
present practices, policies, or
other barriers to equal
employment opportunity”
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Voluntary Affirmative Action Plans
Must exist to eliminate past imbalances
based upon a protected group category
Must be temporary
Must not provide for set-side positions
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Involuntary Affirmative Action Plans
Integral Part of an Affirmative Action Plan
Step 1
Analyze under-representation & availability
Step 2
Set goals
Step 3
Specify how goals will be attained
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What Can HR Do?
 Monitor
your workplace.
 HR must know what is going on!
 Keep lines of communication open.
 Conduct prompt, careful and impartial investigations.
 Take swift and appropriate corrective action when
necessary.
 Create an Employee handbook:
 Make sure the handbook is approved by legal counsel.
 Include an employment-at-will clause.
 Have the handbook acknowledged by employee
signature.
 Revise regularly and keep the handbook up-to-date.