examining the legal Environment
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LEGAL ISSUES
Richard J. Wagner, PhD
Part-time faculty
Updated: January 24, 2016
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LAWS TELL US WHAT WE CAN’T DO
Not useful for attracting and hiring best people
Written to correct societal problems often caused by poor management practices
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3 PERSPECTIVES
SELECTING PERSONNEL
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WHAT IS THE “RIGHT” WAY TO SELECT PEOPLE TO HIRE?
Consider three points of view
From a performance perspective
From a legal perspective
From an ethical perspective
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(1) THE PERFORMANCE PERSPECTIVE
Are decisions based on essential job requirements?
Or on something less rigorous and tangible?
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(2) THE LEGAL PERSPECTIVE
Laws generate reports and endless documentation but must be followed.
But too much focus on laws can distract from job performance.
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(3) THE ETHICAL PERSPECTIVE
What is the right thing to do?
What about Affirmative Action?
Helping those traditionally under-represented
What about reverse discrimination?
Affects those who would have been offered jobs except for Affirmative Action
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ACRONYMS TO KNOW
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TERMS TO KNOW
EEOC: Equal Employment Opportunity Commission
ADEA: Age Discrimination in Employment Act
FLSA: Fair Labor Standards Act
ADA: Americans With Disabilities Act
EPA: Equal Pay Act
AAP: Affirmation Action Plan
CR: Civil Rights
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RECORDKEEPING
How long should personnel records be kept?
EEOC: 1 year from termination
ADEA: 3 years
FLSA: 3 years
But even that is not the complete answer.
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ABOUT APPLICABLE LAWS
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CR 1964 (TITLE VII)
Prohibits discrimination in employment on the basis of:
Race
Color
National origin
Religion
Gender
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CIVIL RIGHTS LEGISLATION: FEDERAL STATUTORY LAW
CR 1866
Applies to race and national/ethnic origin only
Applies to private employers and labor unions
CR 1871
Applies to broad range of situations such as sex, religion, etc.
Applies only to state and local government employees
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CR 1991 (AMENDMENT TO TITLE VII)
Negated shift of burden of proof to plaintiff
Plaintiff must identify specific section of selection process that caused adverse impact
Cap on compensatory damages but adds punitive damages for intentional discrimination (including sexual harassment)
Makes adjusting cutoff scores illegal
Prohibits race-norming (grouping scores by race)
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EXECUTIVE ORDER 11246 (1965 AND 1968)
Requires affirmative action plans from federal contractors and subcontractors
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AGE DISCRIMINATION IN EMPLOYMENT ACT (1967)
ADEA and amendments
Forbid discrimination in employment of workers older than 40 years
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AMERICANS WITH DISABILITIES ACT (1990)
Affects organizations with 15 or more employees.
Covers:
25% of American workforce
900 disabilities
Excludes:
Homsexuality
Sexual behavior disorders
Kleptomania
Pyromania
Illegal drug use
Current alcoholics (but does cover those who are rehabilitated)
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ADA
Must limit major life function
Or have record of such limitation
Requires reasonable accommodation in selection process (interviews, tests, etc.)
Must not create undue hardship for employer
Must be essential job activity
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PREGNANCY DISCRIMINATION ACT (1978)
Pregnancy treated as short-term illness
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IMMIGRATION REFORM AND CONTROL ACT (1986)
Verify applicant eligibility for employment
Familiar I-9 form
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CIVIL RIGHTS LEGISLATION / STATE STATUTORY LAW
State (and local) governments may pass laws covering other issues
Setting a higher minimum wage
Sexual orientation or preference (not covered by federal law)
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OTHER TERMS TO KNOW
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(DEFEND AGAINST BY)
BFOQ (Bona Fide Occupational Qualification)
Race can never be a BFOQ
- Example: Mandatory retirement age for pilots
Procedures must be job-related
Validate hiring process
Necessary for safe and efficient operation
Loss of business usually not acceptable reason
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AFFIRMATIVE ACTION
Intended to correct effects of past discrimination
Considered temporary and should not be overly harmful to other applicants
Requires 3 steps:
Utilization analysis (where we are)
Action plan
Goals and timetables
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REVERSE DISCRIMINATION
When affirmative action plans dictate hiring/promoting protected class over majority class
Various court cases
Affirmative Action court cases continue to be heard in courts
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BURDEN OF PROOF
Shifts to organization if adverse impact is shown
Means that company must PROVE that its hiring/promotion procedures do NOT discriminate
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EMPLOYMENT AT WILL
Either party (employee or employer) may terminate “at will”
Considered default “contract”
Watch out for “promises” implied such as promotion in two years
Put employment offers in writing
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The end