chapter 11 complying with workplace justice laws

Chapter 11

Complying with Workplace Justice Laws

Gaining Competitive Advantage

• Marriott’s Open Door Policy—”Guarantee of Fair Treatment” to handle employee complaints– Bring complaint to supervisor, next to the

supervisor’s boss, and finally the individual further up the managerial ladder

– Not working—large number of discrimination complaints

Marriott

• Solution—to Implement a Peer Review Process– Surveyed employees– Conducted focus groups—”What

characteristics should a complaint resolution system include?”

– Employees wanted impartial listeners who would promptly follow up

– Utilize open-door policy and then they had the option of bringing it to the peer review panel

Marriott

• Employees feel panel is fair and objective

• Managers sees the panel as an opportunity to reinforce and clarify its corporate policy and rules

• What about bottom-line results?– First year EEO charges dropped by 50% and

by 83% in the second year

Linking Workplace Justice to Competitive Advantage

• Workforce justice laws deal with the fairness of organizational practices that dictate the day-to-day treatment of employees

• How do we gain a competitive advantage?– Lower litigation costs– Positive ee attitudes and behavior– Excellent company image• How do we gain a competitive advantage?

• 70% all employment claims result in monetary awards—average is $1.5 million


• If an ee perceives unjust treatment they normally respond by engaging in activities that will harm a company’s competitive advantage– Lawsuits– Staging protests– Become less committed to the organization– Poor organizational citizens

Topic is critical today due to growing diversity in organizations


• Promote a favorable company image it helps with recruiting efforts (fair treatment of ees)

• Best companies to work for—diversity is embraced

Workplace Justice & Employment Discrimination

• Sexual harassment has been a long standing problem and really came to light in the mid 1970s

• Title VII of the Civil Rights Act--charges rose from 6,127 in 1990 to over 15,000 in 2001--87% all charges filed by women

• What types of problems does this cause employers?– Turnover– Absenteeism– Low morale– Lack of effective teamwork– Poor productivity– Stress and/or psychological problems


• Forms of sexual harassment?– Quid Pro Quo—”this for that” –”if you do this

for me, I’ll do that for you.” (sexual favors in order to be hired, promoted, granted a pay raise, or allowed to keep a job

– Hostile environments are those in which ees are subject to unwelcome, intimidating working conditions

Discuss Taking a Close Look At—11-1 page 344


• How does one prove a hostile environment case?– Ee has to prove that the disputed behavior was

unwelcome, based on gender, and abusive– To be considered sexual harassment, the challenged

behavior must be gender based– Challenged behavior must be severe or abusive

(severity of acts, frequency, and the total number of days they have been occurring)


• How should an employer deal with sexual harassment?– Establish a written sexual harassment policy– Provide supervisory training that focuses on the legal

definition of sexual harassment– Establish investigative guidelines that maintain ee

confidentiality– Establish a committee composed of both men and

women to investigate sexual harassment claims– Establish a means of detecting unreported instances

of sexual harassmentDiscuss Exhibit 11-1 EEO Guidelines page 347


• Pregnancy Discrimination—Pregnancy Discrimination Act– May not discriminate on the basis of pregnancy,

childbirth, or related medical conditions– Need to be treated the same way as ees who are

temporarily disabled for other reasons

• FMLA of 1993 (50 or more ees)-grant workers up to 12 weeks of unpaid leave per year for the care of a newborn child, an ill family member, or their own illness


• How does it protect employers?– Allows employers to exempt ees with the

highest earnings– Requires ees to reimburse the employer for

insurance premiums paid during the leave if they are able to return to work, yet choose not to do so.

Employee Misconduct

• Misconduct occurs when an ee commits an infraction of workplace rules

• Procedures are spelled out regarding the process to follow

• Effective policies encompass the notions of just cause and due process– Just cause—that the cause of action should be a fair

one– Due process—means the ee should be informed of

the charges against them and be given an opportunity to defend themselves

Employee Misconduct

• Progressive Discipline System—each step increases in severity:– Oral warning—ee informed of the incorrect behavior

and how to correct it– Written warning– Probation– Suspension– Termination (move to this step due to theft, drug use,

or sabotageProgressive Discipline process varies based on

organization culture and philosophy

Poor Performance

• Workers may be discharged for poor performance

• When the charge is legally challenged a company must prove that the charge was performance-based and not discriminatory

• Key is a solid performance appraisal system– Set clear performance standards– Needs to be communicated to ee– Managers need to know how to complete ratings

Poor Performance

• What else would help the employer’s case?– Notes, memos, records of customer complaints, or

eye witness testimony of poor performance– Records that show the discharged individual has been

treated similar to others in organization with similar performance problems

– Evidence manager had coached the employee to improve substandard performance

Layoffs & Discrimination

• Most frequent challenge to layoffs is age discrimination—employer purges organization of older workers (save money)

• How can organizations justify layoffs?– Lagging sales– Growing inventory– Depressed economy

• What else should an organization due prior to a layoff?– Transferring ees to vacant positions– Place in newly created part time positions– Work a shorter workweek– Remove all contractors and temporary workers– Pay Cuts


• Claims of discrimination can also be refuted by utilizing statistics—showing that the workforce stayed the same with respect to age, sex, race, etc., after the layoff.

• Companies may offer voluntary early retirement in conjunction with a layoff—incentives should be more generous than would occur in a layoff

• Could backfire—when a retiree later states it was age discrimination and that they were coerced into retirement


• Firm may avoid such charges by having early retirees sign written waivers of their right to sue under the Age Discrimination in Employment Act. The waivers must meet minimum requirements under Older Workers Benefit Protection Act (OWBPA)

Workplace Rules

• Employers impose rules to restrict certain types of behaviors (i.e., theft, insubordination, drug use, or horseplay– Courts have recognized the need for workplace rules

Controversial rules set by employers

--No smoking rules

--well being of non-smokers

--financial—higher insurance rates for smokers

Workplace Rules

• Rules governing romantic relationships– Relationships with competitors—protect trade

secrets– Bar managers from having relationships with

non-management personnel (favored ee would be more likely to be granted rewards)

• Misconduct outside the workplace:– Suspend or discharge ees who have been

arrested, jailed, and/or convicted of a crime

Wrongful Termination & Employment-At-Will

• Employment-At-Will—legal doctrine that permits an employer to discharge an ee for any reason, even an unfair one

• U.S. only industrialized nation in the world that does not protect all workers from wrongful termination

Discuss Exhibit 11-5 page 360

Exceptions to the Employment-At-Will Doctrine

• Public policy—any doctrine that serves the needs of society; if public policy is violated, society will suffer harm

• What are some examples?– Serving on jury duty– Exercising his or her right to file a worker’s

compensation claim– Whistle blowing (Enron)– Participating in a legal proceeding contrary to

employer’s wishes

Exceptions to the Employment-At-Will Doctrine

• What else?– Refusing to commit perjury– Refusing to commit an unlawful act, like

fudging tax returns– Refusing to steal secrets from a company’s

competitors– Implied contract– guarantee of long term

employment in an interview or employee handbook

Preventing Wrongful Termination

• Include an at-will statement on the application form, such as the following one:I understand that my employment may be terminated, with or without cause, at any time, at the option of either the company or myself

• Place a disclaimer in the employee handbook, stating that the document is not to be interpreted as a contract—that it is provided as a matter of information only

• Train interviewers to avoid making comments to applicants that imply long-term job security

One must always document to ensure their discipline and discharge policies are fair

chapter 11 complying with workplace justice laws

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