Human Resource Management:
Gaining a Competitive Advantage
Chapter 03
The Legal Environment:
Equal Employment Opportunity
and Safety
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
 Identify the three branches of government and the role
each plays in influencing HRM legal environment.
 List major federal laws that require equal employment
opportunity (EEO) and the protections provided by
each of these laws.
 Discuss the roles, responsibilities, and requirements of
the federal agencies responsible for EEO laws.
 Identify four theories of discrimination under Title VII of
the Civil Rights Act and apply these theories to
different discrimination situations.
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Learning Objectives, cont.
 Discuss the legal issues involved with
preferential treatment programs.
 Identify behavior that constitutes sexual
harassment and list things than an
organization can do to eliminate or minimize
it.
 Identify the major provisions of the
Occupational Safety and Health Act
(OSHA) (1970) and the rights of employees
guaranteed by this act.
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U.S. Legal System
Legislative
Branch
Judicial
Branch
Executive
Branch
3
Branches
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Equal Employment Opportunity (EEO)
 EEO– the government's attempt to ensure that
all individuals have an equal chance for
employment, regardless of race, color, religion,
sex or national origin.
 Constitutional Amendments:
13th Amendment - abolished slavery
14th Amendment – provides equal protection
for all citizens and requires due process in
state action.
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6
Congressional Legislation
 Civil Rights Acts (1866 and 1871)
 Equal Pay Act of 1963
 Title VII of the Civil Rights Act of 1964
 Age Discrimination in Employment Act of
1967
 Rehabilitation Act of 1973
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Congressional Legislation
Vietnam Era Veteran’s Readjustment Act of
1974
Pregnancy Discrimination Act
Civil Rights Act of 1991
Americans with Disabilities Act of 1990
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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
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Executive Orders
Executive Order 11246 Prohibits government
contactors from discrimination
Executive Order 11478 government employment
policies based on merit
and fitness
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Enforcement of EEO
Two agencies responsible for the enforcement of
these laws and executive orders:
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Equal Employment Opportunity
Commission
3 major responsibilities of EEOC:
1. Investigate and resolve discrimination
complaints
2. Gather information
3. Issue guidelines (ex. – Uniform Guidelines
on Employee Selection Procedures)
Lilly Ledbetter Fair Pay Act
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Office of Federal Contract
Compliance Programs (OFCCP)
3 components:
1. Utilization analysis
2. Goals and timetables
3. Action steps
The OFCCP annually audits government
contractors.
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Disparate
Impact
Disparate
Treatment
Reasonable
Accommodation
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15
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 qualifications (BFOQ)
UAW v. Johnson Controls, Inc.
McDonnell Douglas Corp. v. Green
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Bona Fide Occupational Qualification
(BFOQ)
BFOQ is a job qualification based on race, sex,
religion, etc. that an employer asserts is a
necessary qualification for the job.
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Disparate Impact
Disparate impact occurs when a neutral employment
practice disproportionately excludes a protected group
from employment opportunities.
• Four-fifths rule
• Standard deviation rule (Prima Facie case
established where the difference between actual
and expected representations is greater than 2
standard deviations from the mean – 95%
confidence interval)
Wards Cove Packing Co. v. Antonio
Griggs v. Duke Power
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Four Fifths Rule Examples
Example I:
Applicant
Number
Pool
of
Number
Hiring
Race
Applicants
Hired
Rate
White
100
80
80.00%
Black
60
20
33.33%
-------
-------
160
100
Total:
Hiring Rate, Minority over Majority:
41.67%
Less than 80%: Prima Facie Discriminatory
Example II:
Applicant
Number
Pool
of
Number
Hiring
Race
Applicants
Hired
Rate
White
100
50
50.00%
Black
60
25
41.67%
-------
-------
160
80
Total:
Hiring Rate, Minority over Majority:
Greater than 80%: No Prima Facie Discrimination
83.33%
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Reasonable Accommodation
Reasonable Accommodation - places a
special obligation on an employer to affirmatively
accommodate an individual’s disability or
religion.
Religion and Accommodation
Disability and Accommodation
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Retaliation
for Participation and Opposition
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.
Employees do not have an unlimited right to talk
about how racist or sexist their employers are.
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Diversity and EEO ISSUES
Sexual Harassment
Affirmative Action
and
Reverse Discrimination
Outcomes of Americans
with Disabilities Act
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Sexual Harassment
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.
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Sexual Harassment
Quid Pro Quo harassment
 Bundy v. Jackson
Hostile Working Environment
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Sexual Harassment
3 critical conditions for Sexual Harassment cases:
1. The plaintiff cannot have "invited or incited" the advances
2. Harassment must have been severe
3. The court must determine the liability of the organization
for actions of its employees
See Meritor v. Vinson
Preventative steps include development of a policy
statement, training, a reporting mechanism and
disciplinary policy.
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Affirmative Action and
Reverse Discrimination
 Affirmative Action was conceived of as a
way of taking extra effort to attract and retain
minority employees.
 Imposed quota programs.
 The entire debate over affirmative action
continues to evoke attention. See Ricci v.
DeStefano
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Americans with Disabilities Act (ADA)
Outcomes
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.
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28
Employee Safety
 Employee safety is regulated by both federal and
state governments.
 Research into workplace safety is conducted by
NIOSH (National Institute for Occupational Safety and
Health)
 The Occupational Safety and Health Act (OSHA)
authorized federal regulation of workplace safety
General Duty Clause – general duty to furnish
each employee with a place of employment free
from recognized hazards that cause or are likely to
cause death or serious physical harm
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Employee Rights under OSHA
1. Request an inspection.
2. Have a representative present at
inspection.
3. Have dangerous substances identified.
4. Be promptly informed about exposure
to hazards and given access to
accurate records regarding exposures.
5. Have employer violations
posted at work-site.
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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
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Safety Awareness Programs
Safety Awareness Programs attempt to instill
symbolic and substantive changes to a safety
program.
3 Components of a Safety Awareness
Program:
1. Identify and Communicate Job Hazards
 Job hazard analysis technique
 Technic of Operations Review (TOR)
2. Reinforce Safe Practices
3. Promote Safety Internationally
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Summary
 One 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 their businesses in ways that are
financially and ethically sound, and in so
doing they will also create a competitive
advantage.
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