timeline for making profit: Investors will need an indication of when they expect some return on their investment so you need to provide some reasonable timelines of when that will be
Chapter 33
Equal Opportunity in Employment
Civil Rights Act of 1964
- Statutes that outlawed employment discrimination against certain classes
- Providing equal opportunity in employment
- Title VII of Civil Rights Act of 1964: Enacted to eliminate job discrimination based on race, color, religion, sex, and national origin
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Scope of Coverage of Title VII
- It applies to:
- Employers with fifteen or more employees
- All employment agencies
- Labor unions with fifteen or more members
- State and local governments and agencies
- Federal government employment
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Scope of Coverage of Title VII
- Prohibits discrimination in hiring, promotion, compensation, dismissal, work rules, etc.
- Disparate-treatment discrimination: Employer discriminates against a specific individual based on the person’s race, color, religion, sex, or national origin
- Disparate-impact discrimination: Employer discriminates against an entire protected class
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Remedies for Violations of Title VII
- Successful plaintiff can recover:
- Back pay and reasonable attorneys’ fees
- Equitable relief, including reinstatement and seniority
- Punitive damages for intentional discrimination
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Race, Color, and National Origin Discrimination
- Race discrimination: based on a person’s race
- Color discrimination: based on a person’s color
- National origin discrimination: based on a person’s heritage, cultural characteristics, or country of the person’s ancestors
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Gender Discrimination
- Discrimination based on gender
- Prohibits discrimination where sexual favors are requested to obtain job or promotion
- Pregnancy Discrimination Act: forbids discrimination due to pregnancy, childbirth, or related medical conditions
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Sexual Harassment
- Lewd remarks, touching, intimidation, posting of indecent materials, and other verbal or physical conduct of a sexual nature
- Sexual harassment that creates hostile work environment violates Title VII
- Same-sex harassment also violates Title VII
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Sexual Harassment
- Employer may defend by proving that:
- He exercised care to prevent and correct any such behavior
- Plaintiff-employee failed to take advantage of preventive or corrective opportunities provided by employer
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Religious Discrimination
- Discrimination based on a person’s religion or religious practices
- Employer has to reasonably accommodate religious observances, practices, and beliefs of employees
- Permits religious organizations to employ individuals of a particular religion
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Defenses to a Title VII Action
- Employers can select employees based on merit, which includes work, qualification, etc.
- Employers maintain seniority system that reward long-term employees
- Bona fide occupational qualification (BFOQ):
- Discrimination based on protected classes other than race or color is permitted
- Must be job related and a business necessity
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Equal Pay Act
- Protects both sexes from pay discrimination based on sex
- Prohibits disparity in pay for jobs that require:
- Equal skill
- Equal effort
- Equal responsibility
- Similar working conditions
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Criteria That Justify a Differential in Wages
- Four criteria that justify a differential in wages:
- Seniority
- Merit
- Quantity or quality of product
- Any factor other than sex
- Employer bears the burden of proving these defenses
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Age Discrimination in Employment Act
- Prohibits age discrimination practices:
- Against employees who are 40 years and older
- In all employment decisions, including hiring, promotions, compensation, etc.
- With regard to employee benefits
- Permits age discrimination where BFOQ is shown
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Americans with Disabilities Act
- Employers and providers of public transportation, telecommunications, and public accommodations must accommodate individuals with disabilities
- Qualified individual with a disability: prohibits discrimination against individual who has physical or mental impairment that limits a major life activity, but can perform the functions of the job
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Americans with Disabilities Act
- Limits on employer questions: limits employer’s ability to inquire about an applicant’s disabilities
- Reasonable accommodation for disability: employer is obliged to reasonably accommodate an individual’s disability, if it does not cause undue hardship on employer
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Americans with Disabilities Act
- Undue hardship: employers are not obligated to provide accommodations that impose an undue hardship on employer
- Uncovered conditions: certain conditions of disability, like temporary impairments, and users of illegal drugs and alcohol are not covered by the act
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Genetic Information Nondiscrimination Act
- Prohibits discrimination against employees based on genetic information
- Prohibits use of genetic information in making decisions, including hiring, promoting, providing benefits, etc.
- Remedies for violation include corrective action and monetary fines
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Affirmative Action
- Affirmative action plan: job preferences given to minority groups and other protected-class applicants when making employment decisions
- Legal, if narrowly tailored to achieve compelling interest
- Reverse discrimination: discrimination against a majority group
- Majority group may sue under Title VII
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Protection from Retaliation
- Prohibits employers from retaliating against employee for:
- Filing a charge of discrimination
- Participating in a discrimination proceeding
- Acts of retaliation include dismissing, demoting, harassing, etc.
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Case 33.2: U.S. Supreme Court Employer Retaliation
- Case
- Thompson v. North American Stainless, LP
- 131 S.Ct. 863, 178 L.Ed.2d 694, Web 2011 U.S. Lexis 913 (2011)
- Supreme Court of the United States
- Issue
- Does Title VII permit third-party retaliation claims against an employer?
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