managing human resources (legal aspects) chapter 7 june 14, 2012
TRANSCRIPT
![Page 1: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/1.jpg)
Managing Human Resources (Legal Aspects)
Chapter 7June 14, 2012
![Page 2: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/2.jpg)
Learning Objectives
LO 1 Summarize EEO laws that influence human resources management
LO 2 Discuss how companies use human resources management to gain competitive advantage
LO 3 Give reasons why companies recruit both internally and externally for new hires
LO 4 Identify various methods for selecting new employees
LO 5 Evaluate the importance of spending on training and development
7-2
![Page 3: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/3.jpg)
Learning Objectives (cont.)
LO6 Explain alternatives for who appraises an employee’s performance
LO 7 Describe the fundamental aspects of a reward system
7-3
![Page 4: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/4.jpg)
Human Resource Management
• Definition• Highest single cost• Very heavily regulated
– But then again, not
![Page 5: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/5.jpg)
“Lombardi treats us all alike, like dogs”
![Page 6: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/6.jpg)
Approach to HRM
• Legal context– EEO
• Individual systems/functions/whatever
![Page 7: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/7.jpg)
Basic Definitions
• Equal employment opportunity (EEO)• Affirmative action (AA)
– Past– Future
• Quotas
![Page 8: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/8.jpg)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Nat Or. ADEA ADA Racial Religion Gender
![Page 9: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/9.jpg)
Why?
• Power imbalance• Disrupt status quo• Truth, justice, and the American Way!
![Page 10: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/10.jpg)
Why?• Smart business
– Avoid lawsuits
![Page 11: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/11.jpg)
•
Georgia Car Dealership to Pay $140,000 for Racial Harassment of Black Manager 1/14/10
• Monterey Gourmet Foods Sued for Sexual Harassment and Retaliation 1/13/10
• Giumarra Vineyards Sued by EEOC for Sexual Harassment/Retaliation Against Farm Workers 1/13/10
• EEOC Sues Asia Pacific Hotels for Sexual Harassment 1/12/10
• West Texas Cap Maker Settles EEOC Sexual Harassment Suit 1/11/10
• Sims Chevrolet To Pay $85,000 To Settle EEOC Suit For Racial Discrimination/Retaliation 1/8/10
• Montgomery Restaurant Pays $16,500 to Settle EEOC Pregnancy Discrimination Suit 1/8/10
• Saks Fifth Avenue Settles EEOC Disability Discrimination Suit 1/7/10
• Ralph Schomp Automotive T Pay $1.5 Million To Settle EEOC Sex/Age Bias Lawsuit 1/7/10
• EEOC Sues K-Designers for Sex Discrimination & Retaliation Against Female Sales Mgr 1/6/10
• Sentry Credit Settles EEOC Disability Bias Suit 1/6/10
• Job Bias Charges Approach Record High in Fiscal Year 2009, EEOC Reports 1/6/10
• Riverstone Residential / Realty Settles EEOC Disability Discrimination Lawsuit 1/5/10
• Vanguard Group to Pay $300,000 to Settle EEOC Suit Alleging Racial Bias in Hiring 1/5/10
• EEOC Obtains $110,000 in Settlement of Sexual Harassment Case with Las Vegas Car Dealership 1/4/10
• EEOC Sues American Laser Centers for Sexual Harassment and Retaliation 1/4/10
• Merchant State Bank to Pay $50,000 for Disability Bias 1/4/10
• EEOC Sues Sparks Steak House for Male-On-Male Sexual Harassment, Retaliation 12/31/09
• Race, LLC / Studsvik to Pay $650,000 to Settle EEOC Racial Harassment & Retaliation Suit 12/31/09
• Rock Concrete Construction Corp. To Pay $31,000 To Settle EEOC Retaliation Suit 12/30/09
![Page 12: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/12.jpg)
Why?• Smart business
– Avoid lawsuits– Enhances reputation and image as an employer
• Enhances hiring quality• Enhances organizational performance
![Page 13: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/13.jpg)
Why?• Smart business
– Reinforces an ethical culture
![Page 14: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/14.jpg)
Major Regulatory Documents
• Constitution– 5th amendment– 14th amendment
• Federal legislation• Executive orders• Uniform Guidelines for Employee Selection
![Page 15: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/15.jpg)
4 sets of employee-related laws
• Union-mgt• Employee protection• Compensation and benefits• EEO
![Page 16: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/16.jpg)
Civil Rights Act of 1964(Title VII)
• Basic fairness• Coverage
– => 15 employees– Unions– Employment agencies– Govt functioning as employer– Higher education
![Page 17: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/17.jpg)
Title VII
• Protected characteristics– Race– Color
![Page 18: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/18.jpg)
![Page 19: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/19.jpg)
Title VII
• Protected characteristics– Race– Color– Religion
• Reasonable accommodation• Cost as defense
![Page 20: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/20.jpg)
![Page 21: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/21.jpg)
First Amendment
• “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”
![Page 22: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/22.jpg)
Title VII
• Protected characteristics– Gender
• Pregnancy• Sexual stereotyping• Sexual harassment
– Quid pro quo– Hostile work environment (“reasonable person”)
• Not sexual orientation
![Page 23: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/23.jpg)
![Page 24: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/24.jpg)
Title VII
• Protected characteristics– National origin
• Accent discrimination• English fluency• English-only rules• National dress
![Page 25: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/25.jpg)
Protected Characteristics
• Race• Color• Religion• Gender• National origin
Reverse Discrimination
![Page 26: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/26.jpg)
Forms of Unlawful Discrimination
• Disparate treatment – prima facie
• Belongs to a minority• Applied and was qualified• Rejected• Open
![Page 27: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/27.jpg)
Forms of Unlawful Discrimination
• Disparate treatment– Employer defenses
• BFOQ (Bona fide occupational qualification)
![Page 28: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/28.jpg)
![Page 29: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/29.jpg)
Forms of Unlawful Discrimination
• Disparate treatment– Employer defenses
• BFOQ – NEVER RACE
• Business necessity/job related
![Page 30: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/30.jpg)
![Page 31: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/31.jpg)
![Page 32: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/32.jpg)
Forms of Unlawful Discrimination
• Disparate treatment– Employer defenses
• BFOQ – NEVER RACE
• Business necessity/job related• Preferential treatment• Not covered
– Religious organizations– National security
![Page 33: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/33.jpg)
Forms of Unlawful Discrimination
• Disparate treatment – heed well!– Mixed motive
• Inexperience• Lack of appropriate degree• Poor interviews• Poor test performance• Poor references• Hispanic female >40 (motivating factor???)
![Page 34: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/34.jpg)
Forms of Unlawful Discrimination
• Disparate (adverse) impact – prima facie– 80% rule
![Page 35: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/35.jpg)
80% RuleSelection Ratio (SR) Standard of
Comparison
Caucasians 193/344 = 56%
Hispanics 40/49 = 82% 82% * 80% = 66%
African-Americans
110/209 = 53%
Asians 62/89 = 70%
![Page 36: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/36.jpg)
80% RuleSelection Ratio (SR) Standard of
Comparison
Caucasians 193/344 = 56%
Hispanics 40/49 = 82% 82% * 80% = 66%
African-Americans
110/209 = 53%
Asians 62/89 = 70%
![Page 37: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/37.jpg)
80% RuleSelection Ratio (SR) Standard of
Comparison
Caucasians 193/344 = 56%
Hispanics 40/49 = 82% 82% * 80% = 66%
African-Americans
110/209 = 53%
Asians 62/89 = 70%
![Page 38: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/38.jpg)
80% RuleSelection Ratio (SR) Standard of
Comparison
Caucasians 193/344 = 56%
Hispanics 40/49 = 82% 82% * 80% = 66%
African-Americans
110/209 = 53%
Asians 62/89 = 70%
![Page 39: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/39.jpg)
Forms of unlawful discrimination
• Disparate treatment• Disparate (adverse) impact• Prima facie• Employer defenses
![Page 40: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/40.jpg)
Americans with Disabilities Act (ADA)
• Definition– Have– Once had– Is regarded as having
• Employer obligations– Essential functions– Reasonable accommodation– Undue hardship
![Page 41: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/41.jpg)
Americans with Disabilities Act (ADA)
• Special issues– Obesity– Genetic discrimination– Addiction – Mental impairment
![Page 42: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/42.jpg)
Age Discrimination in Employment Act (ADEA)
• => 40 yrs old• Jury trials• BFOQ
![Page 43: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/43.jpg)
![Page 44: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/44.jpg)
Family and Medical Leave Act
• Coverage– => 50 employees– 12 weeks leave
• Birth, adoption, care
![Page 45: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/45.jpg)
Equal Pay Act
• Substantially equal– Skill– Effort– Responsibility– Working conditions
![Page 46: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/46.jpg)
Equal Pay Act
• Unequal but fair– Merit– Quality/quantity of output– Seniority– Any factor other than gender
![Page 47: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/47.jpg)
![Page 48: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/48.jpg)
![Page 49: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/49.jpg)
Equal Pay Act
• Unequal but fair?– Shorter hours– Extended periods out of workforce– Lower paying jobs – why????
![Page 50: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/50.jpg)
EEOC
• Complaint process– Call (not official complaint)– Visit field office or file formal signed letter– No more than 180 days– Employer notified– EEOC rep visits– Conciliation process– May/may not sue
• Right-to-sue letter
![Page 51: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/51.jpg)
“Special” Employees
• Legal to work– I-9
![Page 52: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/52.jpg)
![Page 53: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/53.jpg)
“Special” Employees
• Legal to work– I-9– E-verify
![Page 54: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/54.jpg)
![Page 55: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/55.jpg)
![Page 56: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/56.jpg)
“Special” Employees
• Legal to work– I-9– E-verify– “green card”
![Page 57: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/57.jpg)
![Page 58: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/58.jpg)
![Page 59: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/59.jpg)
FedEx Employee?
• Yep• Nope• Yep• Nope• Maybe
![Page 60: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/60.jpg)
“Special” Employees
• Independent contractor– Who controls their work?– Who do they work for?– How long will they work for you?– Do they have “skin” in the game?
![Page 61: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/61.jpg)
“Special” Employees
• “…an at will‑ employee may be discharged for good cause, no cause, or even a morally wrong cause.” Smith v. American Greeting
![Page 62: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/62.jpg)
“Special” Employees
• 3 exceptions– Implied contract
![Page 63: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/63.jpg)
“Special” Employees
• 3 exceptions– Implied contract
• Company handbook
![Page 64: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/64.jpg)
Sample Statement• The Company does not offer tenured or guaranteed
employment. Either the Company or the employee can terminate the employment relationship at any time, with or without cause, with or without notice. This is called Employment At Will.
• This employment at will relationship exists regardless of any other written statements or policies contained in this Handbook or any other Company documents or any verbal statement to the contrary.
![Page 65: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/65.jpg)
“Special” Employees
• 3 exceptions– Implied contract
• Company handbook• “Fraudulent Recruiting”
![Page 66: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/66.jpg)
![Page 67: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/67.jpg)
“Special” Employees
• 3 exceptions– Implied contract
• Company handbook• “Fraudulent Recruiting”
– Against public policy– Implied covenant of good faith and fair dealing
![Page 68: Managing Human Resources (Legal Aspects) Chapter 7 June 14, 2012](https://reader038.vdocuments.net/reader038/viewer/2022110101/56649ee75503460f94bf7e05/html5/thumbnails/68.jpg)