Twomey  Jennings
Anderson’s Business Law and the Legal Environment, Comprehensive 20e
Anderson’s Business Law and the Legal Environment, Standard 20e
Business Law: Principles for Today’s Commercial Environment 2e
Chapter 40
Equal Employment
Opportunity Law
Copyright © 2008 by West Legal Studies in Business
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Title VII
• Title VII of the Civil Rights Act of 1964, as
amended, forbids discrimination on the
basis of:
– race,
– color,
– religion,
– sex, or
– national origin.
• The EEOC administers the act.
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Theories of Discrimination
• DISPARATE TREATMENT:
– Exists where employer treats some
individuals less favorably than others
because of their race, color, religion, sex or
national origin.
– Proof of the employer’s discriminatory
motive is essential.
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Theories of Discrimination
• DISPARATE IMPACT:
– Employment practices that make no reference
to race, color, religion, sex, or national origin,
but have an adverse effect on the protected
group.
– The employer must show that there is a jobrelated business necessity for the practice in
question.
– Lack of intent is not a defense.
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Theories of Discrimination
TYPE/FORM
EXAMPLE
Disparate treatment
Paying men in the same job a
higher wage than women
Disparate impact
Job screening tests that exclude
classes (height and weight
requirements that serve to exclude
women)
Sexual harassment
QUID PRO QUO
Hostile atmosphere
Exceptions: BFOQ
Presbyterian for a position as a
Presbyterian misister
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EEOC
• If a state EEO agency or the EEOC is not
able to resolve the case, the EEOC issues
a right-to-sue letter that enables the
person claiming a Title VII violation to
sue in a federal district court.
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EEOC
• An affirmative action plan is legal under
Title VII provided there is a voluntary
“plan” justified as a remedial measure
and provided it does not unnecessarily
hinder the interests of whites.
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Protected Classes
and Exceptions
•
•
•
•
Race and Color.
Religion.
Sex.
Sexual Harassment (employer’s may be
vicariously liable for supervisors).
– Quid Pro Quo cases.
– Hostile Work Environment.
– Non-supervisors.
• National Origin.
– Lack of English Language.
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Title VII Exceptions
• Employers have several defenses they
may raise in a Title VII case to explain
differences in employment conditions.
– (1) bona fide occupational qualifications
reasonably necessary to the normal
operation of the business,
– (2) job-related professionally developed
ability tests, and
– (3) bona fide seniority systems.
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Affirmative Action
and Reverse Discrimination
• Employers may have permissible
Affirmation Action Plans:
– Plan is remedial in nature, voluntary and
temporary.
• Reverse Discrimination.
– AAP may discriminate against nonminorities.
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Other EEO Laws
• Under the Equal Pay Act (EPA),
employers must not pay employees of
one gender a lower wage rate than the
rate paid to employees of the other
gender for substantially equal work.
• Workers over 40 years old are protected
from discrimination by the Age
Discrimination in Employment Act
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(ADEA).
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ADA
• The Americans with Disabilities Act
(ADA) prohibit employment
discrimination against persons with
disabilities.
• Under the ADA, employers must
make reasonable accommodations
without undue hardship on them to
enable individuals with disabilities to
work.
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Extraterritoriality
• Civil Rights Act of 1991 amended both
Title VII and ADA to protect U.S.
citizens employed by American-owned
corporations who operate in foreign
countries.
– Exception: compliance with
extraterritoriality would vioate a foreign
nation’s laws.
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Review: Antidiscrimination
Laws
STATUTE
COVERAGE
Title VII of the Civil Rights Act
of 1964 (Amended)
Prohibits discrimination on the
basis of race, color, religion, sex,
or national origin
Equal Pay Act of 1963 (EPA)
Prohibits payment of different
salaries for equal work
Pregnancy Discrimination Act
(1974)
Prohibits discrimination on the
basis of pregnancy or family
planning
Age Discrimination Employment
Act (ADEA)
Prohibits discrimination on the
basis of age
Americans with Disabilities Act
(ADA)
Prohibits discrimination on the
basis of disability; requires
reasonable accommodation of
individuals with disabilities
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