Legal and Ethical
Aspects of Personnel
Management
Advanced Marketing
What is Personnel Management
Process of hiring and developing
employees so that they become more
valuable to the organization
Legal VS Ethical
• Legal issues are matters that are governed by law
• Ethical issues may be governed by company policy
Major Legal Aspects to Consider
• Laws at local, state, and federal jurisdictions regulate how
companies conduct staffing and management of employees
• Title VII of 1964 Civil Rights Act banned most discriminatory
hiring practices
• Three main sensitive areas in personnel management: Equal
Employment Opportunity (EEO); Affirmative Action; and
Sexual Harrassment
Equal Opportunity
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EEO
Individuals protected from illegal discrimination
Based on certain characteristics such race, age, or gender
These individuals called “protected class”
Federal Laws Protect the Following
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Race, ethnic origin, color
Gender (women, including those who are pregnant)
Age (individuals over 40)
Individuals with Disabilities (Physical and Mental)
Military Experience (Viet Nam era veterans)
Religion (special beliefs and practices)
Purpose of EEO
Ensure everyone has equal opportunity of getting a job or being
promoted at work
1964 Civil Rights Act, Title VII established EEO
Laws Enforced Under EEO
• Civil Rights Act 1964- Prohibits discrimination based on race,
color, religion, nation origin, or sex
• Civil Rights Act 1991- Reaffirms and tightens prohibition of
discrimination- Permits law suit for punitive damages in cases
of intentional discrimination- burden of proof on employer
Affirmative Action
• Requires employer to make an extra effort to hire and
promote people who belong to a protected class
• Includes taking specific actions designed to eliminate present
effects of past discriminations
• Pregnancy Discrimination Act of 1978Prohibits discrimination or dismissal of women because of
pregnancy alone; protects job security during maternity leaves
• Americans with Disabilities Act- Prohibits discrimination
against individuals with physical or mental disabilities or
chronically ill; requires “reasonable accommodations” be
provided
Laws Continues
• Vocational Rehabilitation Act- Prohibits discrimination on basis
of physical or mental disabilities and requires employees be
informated about affirmative action plans
Who Most Conform with EEO and
Affirmative Action
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Most employers in US must comply with Title VII
Required from private employers with 15 or more persons
All educational institutions
State, local governments
Public and Private Employment Agencies
Labor Unions with 15 or more members
Joint Labor-Management Committees for Apprenticeship and
Training
Sexual Harassment
• Since 1980, guidelines used from EEO to define
• “Unwelcome sexual advances for sexual favors, and other
verbal or physical conduct of a sexual nature”
• Includes sexually suggestive remarks, unwanted touching,
sexual advances or sexual favors
• Other verbal or physical conduct of sexual nature
Sexual Harrassment
• 1993 Supreme Court Ruling-test widened for sexual
harassment under civil rights law
• “would reasonably be perceived, and is perceived as hostile or
abusive”• Employees don’t need to demonstrate that they have been
psychologically damaged to prove sexual harassment in
workplace
• Simply must prove that environment is hostile
Sexual Harrassment
Not Just Problem of Women
Recent Supreme Court rulings broaden definition of sexual
harassment to include:
• Same-sex harassment
• Harrassment of males by femalse
Other Employment Laws
• Fair Labor Standards Act- minimum wage; overtime, and child
labor
• Employee Polygraph Protection Act- outlaws use of polygraph
for employment purposes
• Privacy Laws- legal righrts regarding who has access to
information about work history and job performance
• Whistleblower Protection Act-
Law
Date
Description
National Labor Relations
Act
1935
Requires employers to recognize a union chosen by the
majority of the employees and to establish procedures
governing collective bargaining
Age Discrimination in
Employment Act
1967,
Amended in
1978 and
1986
Prohibits age discrimination against employees between 40
and 65 years of age and restricts mandatory retirement
Occupational Safety and
Health Act
1970
Establishes mandatory safety and health standards in
organizations
Vietnam-Era Veterans
Readjustment Assistance
Act
1974
Prohibits discrimination against disabled veterans and
Vietnam-era veterans
Mandatory Retirement
Act
1978
Prohibits forced retirement of most employees before the age
of 70
Immigration Reform and
Control Act
1986
Prohibits employers from knowingly hiring illegal aliens and
profits employment on the basis of national origin of
citizenship
Worker Adjustment and
Retraining Notification
Act
1988
Require employees to provide 60 days/ notice before a facility
closes or implements mass layoff
Employee Polygraph
Protection Act
1988
Limits employer’s ability to use lie detector tests
Family and Medical Leave
Act
1993
Permits employees in organizations with 50 or more workers to
take up to 12 weeks of unpaid leave for family or medical
reasons for each year
Federal Laws
Shaping
Personnel
Management
Activity
Students will view a video. Throughout the movie, students will
identify unethical and illegal employment practices. 50 Points