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Chapter 3 Equal Opportunity Employment

Fundamentals of Human Resource Management Eighth Edition DeCenzo and Robbins. Chapter 3 Equal Opportunity Employment. Introduction. Government legislation affects all HRM functions State and municipal laws impact HRM, as well as the Federal laws. Laws Affecting Discriminatory Practices.

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Chapter 3 Equal Opportunity Employment

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  1. Fundamentals of Human Resource Management Eighth Edition DeCenzo and Robbins Chapter 3 Equal Opportunity Employment Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  2. Introduction • Government legislation affects all HRM functions • State and municipal laws impact HRM, as well as the Federal laws Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  3. Laws Affecting Discriminatory Practices • Legislation prohibiting discrimination on the basis of race, sex, and national origin before the 1964 Civil Rights Act • Civil Rights Act of 1866 • Fourteenth Amendment to the Constitution Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  4. Laws Affecting Discriminatory Practices Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  5. Civil Rights Act of 1964 • Title VII prohibits discrimination in: • hiring • compensation • terms, conditions or privileges of employment • based on: • race • religion • color • sex • national origin • Applies to any organization with 15 or more employees. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  6. Civil Rights Act of 1964 • Griggs v. Duke Power Company (1971) • demonstrated that selection criteria must be directly relevant to the job. • Equal Employment Opportunity Act (EEOA) • Granted enforcement powers to the EEOC • Equal Employment Opportunity Commission (EEOC) • The arm of the federal government empowered to handle discrimination in employment cases Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  7. Civil Rights Act of 1964 • Affirmative Action • Reflect the 1972 premise that white males made up the majority of workers • Companies in the 70’s were still growing and could accommodate more workers • Minorities should be hired to correct past prejudice • Legal and social coercion were necessary to bring about change • Involves: • analyzing current work force demographics • establishing goals and timetables for correcting imbalances Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  8. Civil Rights Act of 1964 • Controversy and criticism of preferences in employment for protected groups is causing legislative bodies to take a second look at Affirmative Action. • Adverse (disparate) impact • occurs when there is a greater rejection rate in an occupation for a protectedgroup (those protected under discrimination laws) than for the majority group. • Adverse (disparate) treatment • occurs when members of a protected group are treated differently than other employees. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  9. Laws Affecting Discriminatory Practices • Executive Order (E.O.) 11246 • Prohibits discrimination on the basis of religion, color, and national origin • Affects • Federal agencies • Those working under federal contracts • Executive Order (E.O.) 11375 • Added sex-based discrimination Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  10. Laws Affecting Discriminatory Practices • Age Discrimination in Employment Act of 1967 • protects those 40 and older • eliminates mandatory retirement and the arbitrary replacement of older workers with younger workers • provides for oversight in pension and benefit issues Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  11. Laws Affecting Discriminatory Practices • Pregnancy Discrimination Act of 1978 • Employment decisions may not be based on an individual’s pregnancy • Must treat pregnancy as any other short-term disability • Supplemented by various state laws Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  12. Laws Affecting Discriminatory Practices • The Americans with Disabilities Act of 1990 (ADA) • Extends protection of Vocational Rehabilitation Act to most forms of disability status (including AIDS and other contagious diseases). • Requires companies to make reasonable accommodations for qualified applicants and employees. • Covers private companies and all public service organizations. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  13. Laws Affecting Discriminatory Practices • The Family and Medical Leave Act of 1993 • Employees in organizations employing 50 or more workers can take up to 12 weeks unpaid leave each year for • Childbirth • Adoption • Own illness or illness of a family member • Employees must meet eligibility requirements to be covered. • Employers must meet certain communication requirements under the Act. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  14. Laws Affecting Discriminatory Practices • Executive Order 11478 • Amends E.O. 11246 • Practices in the federal government must be based on merit • Prohibits discrimination based on: • Political affiliation • Marital status • Physical handicap Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  15. Laws Affecting Discriminatory Practices • Civil Rights Act of 1991 • Passed after Supreme Court decisions diminished effect of Griggs decision. • Prohibits racial harassment • Returns burden of proof to employer • Reinforces illegality of making hiring, firing or promotion decisions on basis of race, ethnicity, sex or religion • Permits women and religious minorities to seek punitive damages in intentional discriminatory claims • Included the Glass Ceiling Act Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  16. Guarding Against Discrimination Practices • Determining Potential Discriminatory Practices • The 4/5ths Rule • Restricted Policy • Geographical Comparisons • McDonnell-Douglas Test Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  17. Guarding Against Discrimination Practices • The 4/5ths Rule • Guideline established by EEOC Uniform Guidelines on Employee Selection Procedures. • Compares selection ratio for minority applicants to that for majority applicants • If less than 4/5ths (80%), discrimination may have occurred. • Applies to all steps in a selection process. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  18. Guarding Against Discrimination Practices • Restricted Policy • infractions occur when HRM activities result in exclusion of a class of individuals • E.g., laying off employees over age 40 while recruiting younger workers Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  19. Guarding Against Discrimination Practices • Geographical Comparisons Characteristics of the qualified pool of potential applicants are compared to characteristics of employees Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  20. Guarding Against Discrimination Practices • McDonnell-Douglas Test • Individual is member of a protected group. • Individual is qualified for job. • Individual is rejected. • Organization continues to seek other applicants with similar qualifications. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  21. Responding to an EEO Charge • Employers should discontinue practices which cannot be defended. • Practice reinstated only after • Careful study • Practice is modified, if necessary • Three defenses: • Business necessity • Bona Fide occupations qualifications • Seniority System Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  22. Responding to an EEO Charge • Business Necessity • the right to expect employees to perform successfully • shown by demonstrating that selection criteria are job-related Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  23. Responding to an EEO Charge • Bona Fide Occupational Qualifications • Can be use when job requirements are “Reasonably necessary to meet the normal operation of that business or enterprise” • Title VII exceptions • Sex • Age • Religion Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  24. Responding to an EEO Charge • Seniority Systems • Decisions that adversely affect protected group members may be permissible if: • Based on well-established and consistently applied seniority systems Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  25. Selected Relevant Supreme Court Cases • Cases Concerning Discrimination • Cases Concerning Reverse Discrimination Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  26. Selected Relevant Supreme Court Cases • Cases concerning discrimination • Griggs v. Duke Power (1971): Tests were illegal when they resulted in adverse impact and were not job related. • Albemarle Paper Company v. Moody (1975): Clarified methods for using and validating tests in selection • Wards Cove Packing Company v. Atonio (1989): Statistics alone could not support evidence of discrimination; burden of proof shifted to the plaintiff. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  27. Selected Relevant Supreme Court Cases • Cases concerning reverse discrimination • Bakke v. the Regents of the University of California at Davis Medical School (1978): School could not set aside seats for minorities. • United Steelworkers of America v. Weber (1979): Court supported company’s voluntary affirmative action training program for minorities. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  28. Selected Relevant Supreme Court Cases • Firefighter Local 1784 v. Stotts (1984) & Wyant v. Jackson Board of Education (1986): • Affirmative action may not take precedence over a seniority system • Collective bargaining agreement giving preferential treatment to minorities in layoffs was illegal. • Johnson v. Santa Clara County Transportation (1987): • Preferential treatment based on AA goals permitted if non-minorities protected. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  29. Enforcing Equal Employment Opportunity • Equal Employment Opportunity Commission • Jurisdiction for Title VII and other legislation that covers charges of discrimination based on race, color, sex, national origin, age or disability. • Five Step Process to Pursue Charges Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  30. Enforcing Equal Employment Opportunity • EEOC notifies company within 10 days of filing and begins investigation • EEOC notifies company of findings within 120 days • If unfounded, process stops If founded, EEOC tries to resolve • If unsuccessful, EEOC begins mediation (settlement meeting) • If unsuccessful, EEOC may file charges in court Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  31. Enforcing Equal Employment Opportunity • Office of Federal Contract Compliance Programs (OFCCP) • Enforces • Executive Order 11246 • Section 503 of Vocational Rehabilitation Act • Vietnam Veterans Readjustment Act of 1974. • Operates within U.S. Dept. of Labor. • Investigates discrimination complaints; process similar to that of EEOC. • Can cancel employer’s contract with federal government • Applies to any organization with a federal contract or acts as a subcontractor. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  32. HRM in a Global Environment • Laws affecting Human Resource Management vary greatly by country. • Canadian laws closely parallel those in the U.S. • In Mexico, employees more likely to be unionized. • Australia’s discrimination laws not enacted until the 1980s Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  33. Current Issues in Employment Law • What is Sexual Harassment? • Unwanted activity of a sexual nature that affects an individual’s employment • Prohibited under Title VII as sex discrimination • Sexual harassment can occur where: verbal or physical conduct toward an individual: • (1) creates an intimidating, offensive, or hostile environment • (2) unreasonably interferes with an individual’s work • (3) adversely affects employee’s employment opportunities. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  34. Current Issues in Employment Law • Meritor Savings Bank v. Vinson Supreme Court case: supported hostile environment claims; identified employer liability. • Harris v. Forklift Systems, Inc. Supreme Court case: victims don’t have to suffer substantial mental distress. • 1998 Supreme Court ruling indicated that harassment can take place even if the employee does not experience any negative job repercussions. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

  35. Current Issues in Employment Law • Are Women Reaching the Top of Organizations? • Comparable worth - determining fair pay for both female-oriented jobs and male-oriented jobs based on comparable skill, effort, and responsibility. • Glass ceiling - lack of women and minority representation at the top levels of organizations. • OFCCP has glass ceiling initiative. • Promotes career development for women and minorities. • Looks for such in its audits. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

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