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Personnel Selection. U1: The Legal Context. Schedule: Wednesday and Monday: Lecture Wednesday, 1/14: Exam. SO5: Why is selection an uncertain activity?. Selection is based on prediction

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personnel selection

Personnel Selection

U1: The Legal Context

Schedule:

Wednesday and Monday: Lecture

Wednesday, 1/14: Exam

so5 why is selection an uncertain activity
SO5: Why is selection an uncertain activity?
  • Selection is based on prediction

1. Limited information about applicants: quality depends upon accuracy and completeness about applicants

      • The more information you obtain, the costlier it becomes, so the data you get is severely limited by cost constraints
        • 50 applicants - interviews?

2. Measurement of jobs, individuals and work performance

      • Your job analysis is not going to be perfect
      • Your interview/test results are not going to be perfect
        • Interview - applicant/interviewer is having a bad day
        • Tests - wording of questions may cause problems
      • Job performance measures used to determine job relatedness of selection instruments are going to be flawed

(Start with SO5, 1-4 just introductory terms don’t need to know the reasons…we will never be able to make perfect selection decisions

even given an excellent selection system; 3 general reasons)

so5 why is selection an uncertain activity3
SO5: Why is selection an uncertain activity?

3. Many other factors affect work performance

  • Motivation
  • Equipment
  • PM programs (task clarification, goal-setting, rewards, etc.)
  • Systems analysis

(basically, these are all the factors you analyzed and discussed in Systems Analysis and in my Psy of Work when we were dealing with performance

diagnostics. As behavior analysts, we tend to focus on these factors rather than selection - get at the person’s ability on the job and training.)

so6 nfe primary purpose of selection
SO6: NFEPrimary purpose of selection
  • The primary purpose of selection is to enhance the probability of making correct employment decisions
    • Select the applicants that have the highest probability of performing well on the job based on
      • What you know about the job: what KSAs are required
      • What you know about the individual based on selection instruments
        • Resume
        • Interviews
        • References
        • Training and experience evaluations
        • Tests (ability, personality, integrity, drug, etc.)

(Since we know that we cannot make perfect selection decisions, the primary purpose of selection is to:

so7 nfe two major objectives of every selection program
SO7: (NFE) Two major objectives of every selection program
  • To develop procedures that are professionally sound
  • To develop procedures that conform to the legal requirements, thus protecting the organization from losing EEO and AA challenges
    • Note the wording - you cannot protect the organization from claims of unfair discrimination, but you can develop procedures that increase the probability that if your procedures are challenged by an individual or, in some cases, the EEOC, the EEOC or the courts will rule in your favor
so7 nfe professionally sound vs legally sound
SO7: (NFE) Professionally sound vs. legally sound
  • If your procedures are professionally sound, they will usually stand up to legal scrutiny and,
  • If you procedures meet legal standards they will usually be professional sound….
  • But not always!!
    • Court decisions are based on the past
      • Uniform Guidelines on Employee Selection Procedures - promulgated in 1978
      • Previous court decisions
    • The professional field of testing and psychometrics has continued to advance during that time, so…
      • There are procedures that testing professionals consider sound, while the courts may not

(I’ll point out the discrepancies as we proceed through the course)

nfe legal context intro
(NFE) Legal context, intro
  • Laws and court decisions change over time
  • Are very, very complex
  • EEO laws are viewed by many in the I/O field as the most significant event in the history of the field
    • Personnel selection is the largest area of specialization in I/O (and has been historically)
    • EEO laws expanded this area of specialization
      • Era began with passage of Title VII of the Civil Rights Act of 1964 (two CRAs before that, but not much impact due their limitations)
      • Financial impact on organizations can be astounding (consider the examples from last class)

(new laws are passed, most recent American with Disabilities Act, but before that CRA of 1991; court interpretations change over time depending

upon whether the courts are liberal or conservative - Supreme Court is now very conservative))

so8 intro why do laws appear to disregard interests of business
SO8 Intro: Why do laws appear to disregard interests of business?
  • Laws place a considerable burden on employers
  • They can be so complex, that you cannot predict how the courts will rule if a case gets that far, even if you have studied all of the laws and regulations:

“We know what we cannot do based on the court cases, but we do not know what we can do”

Gatewood, Field, & Barrick

(NY State Court system - developing state wide selection tests - one court order mandating that we administer the tests by a designated date;

Another court injunction barring us from administering those same tests - threw up our hands - brought in Bob Guion as a friend of the court)

so8 why do laws appear to disregard interests of business
SO8: Why do laws appear to disregard interests of business?
  • The laws have been passed to address national social and economic problems (which is the job of government)
  • The constituents of the laws are not businesses, but social and political groups and citizens devoted to the solution of employment inequities and problems
  • Thus, at times, the laws really do seem to disregard business interests

(remember, you are taking this class as a potential person who will be doing selection; issue for you –

students can’t help siding with applicants….)

so9 fe two important points before the laws
SO9: FETwo important points before the laws

1. None of the laws, EEO or AA, require an organization to hire an unqualified minority (protected class member)

  • EEO requires that the best qualified person is hired, regardless of whether that person is blue, green or purple
  • AA does give preferential treatment, but nonetheless only to qualified applicants
so9 cont two important points
SO9, cont: Two important points

2. Laws are only applicable if your selection procedures have a disproportionate effect on applicants because of some demographic characteristic (gender, race, ethnic background, religion, weight, age, disability, etc.)

You can have the absolutely worst selection methods - that have nothing whatsoever to do with the requirements of the job - but if these procedures have an equal impact on all individuals (majority and minority alike), a lawsuit cannot be filed. There must be some evidence that the selection system has a disproportionate impact on individuals based on some demographic characteristic.

A lousy selection system is NOT illegal if it affects

everyone the same!!

(some states, sexual orientation - MI; CA - cross-dressers, click: for lousy selection system; Dow can continue to use handwriting analysis as long as)

so10 intro three sets of laws
SO10, intro: Three sets of laws
  • Laws passed by the legislature and administered by the Equal Employment Opportunity Commission (part of the Dept. of Justice)
  • Laws passed by the executive branch and administered by the Office of Federal Contract Compliance Programs (part of the Dept. of Labor)
  • Constitutional amendments (5th and 14th) subject to administrative law procedures

Note that all three branches of our government are involved: Legislative, Executive, and Judicial

(text lists laws, but I don’t like the way they are presented and organized, so I present them in a more logical manner in the SOs, but first…

3 sets of laws differ in certain ways, which I will explain in a moment - for the moment, I am going to focus on only on the first two sets of laws)

slide13
SO10

10A. State the groups/characteristics covered by each law

10B. Explain the three major differences between the laws administered by the EEOC and the OFCCP

so10 but this slide nfe eeo laws administered by the eeoc
SO10, but this slide NFE: EEO laws administered by the EEOC

Covers all private and public employers (including Congress as amended in 1972) with more than 15 individuals, but excludes the military, private clubs, religious organizations, and any businesses on Native American reservations

(Indian reservations are considered sovereign nations - do not cover casinos ( Soaring Eagle) or any other business on an

Indian reservation - have their own laws and government - laws are NOT the same as those of the rest of the state/country - traffic, criminal laws, etc.

Soaring Eagle - employer made derogatory remarks about white employees - got into a lot of trouble, but no law protects individuals on reservations)

10a state groups characteristics covered by each law eeoc
Title VII of the CRA of 1964

As amended in 1978 also

CRA of 1991

Not really a separate act; amends several others

Age Discrimination in Employment Act of 1967

American with Disabilities Act, 1990

parts for selection, 1992;

other parts, 1994

Race, color, religion, sex, national origin

pregnancy, childbirth

Same as above

Individuals over 40 years of age

Physical and mental disabilities

10A: State groups/characteristics covered by each law (EEOC)

(title VII, sex added to prevent passage by congress members who opposed it- old boy network wouldn’t approve it; Age discrimination - protects elderly??)

10a other eeoc laws but these laws are nfe
CRA of 1866*

CRA of 1871

only state and fed gov.

Immigration Reform and Control Act of 1986

Race, national origin, and ethnic background

All demographic characteristics

Citizenship, national origin

10A: Other EEOC laws (but these laws are NFE)

*Permitted jury trials and compensation for damages that Title VII did not;

thus some cases brought under this act rather than Title VII.

However, the CRA of 1991 now permits (a) jury trials and (b) limited

damage awards for intentional discrimination cases filed under Title VII.

(Title VII only permitted judges to hear cases - next unit; later this unit, 2 kinds of disproportionate cases - intentional and adverse impact)

so10 this slide nfe eeo aa laws administered by the ofccp
SO10 (this slide NFE): EEO & AA laws administered by the OFCCP

These laws are relevant only to government contractors. A government contractor is, however, defined broadly, as any organization that enters into a work contract with the federal government or receives federal funds.

WMU, for example, is considered to be a federal contractor because of federal grant dollars, and thus must abide by these laws.

(notice addition of AA in the title - reason will become clear in a moment)

10a state groups characteristics covered by each law ofccp
Executive Order 11246

Rehabilitation Act of 1973

(established many precedents for ADA of 1990)

Vietnam Veterans Act of 1974*

Race, color, religion, sex, national origin

(same as Title VII)

Physical and mental disabilities

(same as ADA)

Vietnam era vets, all vets who are 30% disabled

10A: State groups/characteristics covered by each law (OFCCP)

*Not in text but in study objectives, include this for the exam

(why duplicate laws? These require AA - the EEOC laws do not. The notion here is that the federal government should not require AA - giving

Preferential treatment to some citizens; however, the government wanted to promote AA as a social policy; thus, if an organization accepts federal dollars,

then they must accept the conditions that go along with that money Compliance is viewed as voluntary in the sense you do not have to accept the fed dollars.)

10b three basic differences eeoc laws and ofccp laws
10B: Three basic differences - EEOC laws and OFCCP laws

1. Types of organizations covered

  • EEOC laws cover all private and public employers with more than 15 employees (with some exceptions)
  • OFCCP laws cover only federal contractors

2. Affirmative Action

  • EEOC laws do not require AA programs
  • OFCCP laws do require AA programs
10b three basic differences eeoc laws and ofccp laws20
10B: Three basic differences - EEOC laws and OFCCP laws

3. Penalties for noncompliance

  • EEOC laws: Individuals can file a law suit for unfair discrimination and seek redress
  • OFCCP laws: Withdrawal/withholding of federal dollars - individuals cannot file a law suit under these laws

(however, there is one exception: oddly, courts did permit disabled individuals to bring law suits under the Rehabilitation Act of 1973 until ADA was passed in 1990 - go figure. This material in parentheses is NFE.)

so11 this slide nfe protected classes under title vii
SO11: This slide NFEProtected classes under Title VII
  • In the laws, the protected groups are broadly defined (race, color, sex, religion, and national origin)
  • The specific protected classes are not indicated so the laws are flexible and can be applied to individual cases
  • The general protected classes were designated in the Uniform Guidelines on Employee Selection Procedures in 1978, and courts have relied on these (although they have also made exceptions for individual cases)
so11 protected classes under title vii
SO11: Protected classes under Title VII
  • Protected classes
    • African American
    • Native Americans (including Alaskan natives)
    • Hispanics (Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish origin regardless of race)
    • Asians (including Pacific Islanders, but excluding Indians who are racially Caucasian)
    • Females
  • Note that classifications are not mutually exclusive
    • Pacific Islander who is Hispanic (Phillipino)
    • African American who is also Hispanic
    • Individuals self-identify

(for exam, only know the five protected classes; multiculturalism is not built into the laws - no such designation))

so11 protected classes under title vii interesting facts but nfe
SO11: Protected classes under Title VII, interesting facts, but NFE
  • Laws only cover US citizens and those with legal authorization to work in the US
    • International students who are not citizens and do not have legal authorization to work in this country (are on student visas) are not covered by these laws
  • Individuals in other minority groups can file a lawsuit, but the courts will then decide first whether or not they are actually entitled to coverage under Title VII
    • Courts have recently spent a lot of time trying to determine what constitutes a “religion” (religion vs. spirituality)
      • Scientology?
      • Satanism, Wicca, and Paganism?
      • Unitarian?
      • Vodoo?
      • Over half of the 2,000 plus primary religious groups operating in the US were formed after 1960
so11 protected classes under title vii interesting facts nfe
SO11: Protected classes under Title VII, interesting facts (NFE)
    • Courts have adopted a very broad definition of religion

“include moral or ethical beliefs as to what is right and wrong and which are sincerely held with the strength of traditional religious views…”

  • Asians and the term “underrepresented”
    • Asians are included as a protected class
    • They are often not, however, underrepresented because they typically perform very well on cognitive ability tests (ACTs, SATs, GREs, etc.)
    • Thus, they are often excluded from some scholarship programs and AA programs
    • When you see the term “underrepresented” minorities, it typically translates into “Asians excluded”
so12 why laws and court rulings shift over time cra of 1991 as an example
SO12: Why laws and court rulings shift over time: CRA of 1991, as an example
  • Why do we have so many CRAs? Why a CRA of 1991?
  • Demonstrates our government at work and the checks and balances with the three branches of our government
    • Congress makes the laws
    • The judicial branch (Supreme Court) interprets them
    • If Congress doesn’t like how the Supreme Court has interpreted laws, they pass new laws
  • The above is exactly what happened with respect to the CRA of 1991

(In personnel selection, what you learn about the laws and court rulings today may or may not be the case tomorrow; they have actually been

pretty stable for 4-5 years, but before that things were pretty wild, primarily due to ADA – but the CRA of 1991 provides a nice example of that process) )

nfe cra of 1991 a little history
(NFE) CRA of 1991, a little history
  • In 1989, the Supreme Court handed down decisions about three selection cases (the most famous being Wards Cove)
  • The Court was a conservative court, Congress was a liberal Congress and Congress did not like the decisions
    • Democrats typically support EEO and AA
    • Republicans typically do not
nfe cra of 1991 a little history27
(NFE) CRA of 1991, a little history
  • Hence, because Congress was liberal, they passed CRA of 1991 that, with one or two exceptions, negated the decisions of the Supreme Court in the 1989 cases
    • Main framer was Edward Kennedy (arch liberal Democrat)
    • Worked with Robert Dole (conservative Republican) to draft the CRA
      • Compromises made
  • Same process that affected the Shifting Burden of Proof model for adverse impact cases – SO 22.

CRA, Edward Kennedy - many, many revisions and compromises before passage; Bush vetoed the first version. Power of the Supreme Court -

Justices appointed for life and most sought after appt a President makes. Incredible influence on the laws of our country. Pack the court, lib or con. You may have noticed this in presidential election this past Nov. Supreme Court - some justices are likely to retire; completely change the

“law of the land” for decades.)

so14 cra of 1991 and race norming
SO14: CRA of 1991 and race norming
  • The CRA of 1991 bans any type of race norming for selection purposes
    • This provision is actually in concert with the Supreme Court decisions made in 1989
  • What is race norming?

You group individuals according to their race and then rank them with respect to this comparison group.

Whites are grouped with whites. Blacks are grouped with blacks. Hispanics are grouped with Hispanics. Etc.

Choose/select high scorers from each group, regardless of how well the blacks compare to whites and hispanics, how the hispanics compare to whites and blacks, etc.

so14 cra of 1991 and race norming29
SO14: CRA of 1991 and race norming
  • Most common race norming method
    • Create separate ranked selection lists. Then select the top white first, then the top Black, then the top Hispanic, then the top Native American, then the top Asian, then go back to the white list with the second ranked applicants.
  • More sophisticated approach using percentiles
    • Determine percentile rankings for applicants within racial group and then create one list of percentile rankings
      • A white, within the white group, scored in the 96th percentile. That means the candidate scored better than 96% of the white applicants
      • A black, within the black group, scored in the 98th percentile of the black applicants. That means the candidate scored better than 98% of the black applicants
      • Create one list, with the black candidate above the white candidate, regardless of whether the black candidate’s raw score was actually better than the white candidate’s raw score

(used extensively when quotas were acceptable. First major selection case, Griggs v. Duke Power, court imposed a 50% hiring quota for blacks due to

Tests that were not job related and had an adverse impact on blacks)

so14 cra of 1991 and race norming30
SO14: CRA of 1991 and race norming
  • Race norming was very common before CRA of 1991
  • Why?
    • Achieved a diverse work force
    • Selection procedures cannot be challenged in court if there is no adverse impact on minorities, and this procedure prevented adverse impact
    • Quotas were once legal; easiest and fairest way to deal with a court-ordered AA program with, let’s say, 50% hiring quota (i.e., Griggs v. Duke Power)
so15 arguments for and against race norming
SO15: Arguments for and against race norming
  • For:

Helps employers hire a qualified diverse work force combined with the fact that selection tests often account for no more than 25% of how well individuals perform on the job.

In other words, there is a lot of error in predictions made by selection tests (75% of how well individuals perform on the job is often determined by other factors), thus we may not be sacrificing that much in productivity using these methods.

so15 arguments for and against race norming32
SO15: Arguments for and against race norming
  • Against:

Minorities usually do score lower on many job-related, valid selection tests, thus any adjustments in the rankings of applicants can be expected to decrease productivity.

(one fact of selection, whether we like it or not, is that on cognitive ability tests, blacks tend to score 1 SD below whites, hispanics tend to score

2 SDs below whites and asians typically score better than whites on math, poorer than whites on verbal. Given that the tests are job related..)

so17 constitutional amendments how do they differ from other laws
SO17: Constitutional Amendments: How do they differ from other laws
  • 5th and 14th Amendments to the Constitution
    • Only relevant to federal, state, and local governments
    • They cover ALL citizens and are not restricted to demographic groups or characteristics
      • Sexual orientation
      • Even eye or hair color
    • Individuals must prove the intent to discriminate, not simply that the selection procedure had disparate or adverse impact
      • Two types of unfair discrimination: intent and adverse impact, I’ll get to the difference in the moment, but
      • It is much more difficult to prove intent than it is to prove adverse impact

(Moving onto SO17, 16, NFE; Individuals may also bring unfair discrimination law suits under the 5th and 14th amendments to the constitution)

so19 fair and unfair discrimination
SO19: Fair and unfair discrimination
  • Fair discrimination is when individuals (including minorities and protected class members) have lower probabilities of being selected for a job (perform more poorly on selection procedures) and, if hired, would also perform more poorly on the job
  • Unfair discrimination is when individuals have lower probabilities of being selected for a job but if hired, would perform as well as others who had higher probabilities of being selected

Fair discrimination is NOT illegal even if it has adverse impact on protected class members!!

(the purpose of all selection instruments is to discriminate between individuals - otherwise the selection procedure would be useless.Laws designed

To prevent unfair discrimination, not just “discrimination” but we often drop the “unfair” because the context carries it - but it is important; click!!!)

so20 two types of unfair discrimination
SO20: Two types of unfair discrimination

1. Disparate treatment (= intentional discrimination)

Different standards are applied to different groups of individuals even if there is no explicit statement to discriminate or “intent”

  • Females are asked if they have children but males are not
  • Blacks are asked if they have an arrest record but whites are not

(text is a little unclear about disparate treatment; disparate treatment = intentional discrimination even if there was no “conscious intent” or the

Organization did not “mean” to unfairly discriminate)

so20 two types of unfair discrimination36
SO20: Two types of unfair discrimination

2. Disparate or adverse impact

The same procedure is applied uniformly, but it screens out a disproportionate number of minorities

  • Height and weight requirements by police and fire departments have adverse impact on females, Hispanics, and Asians
  • High school and BA degree requirements have adverse impact on Blacks, Hispanics and Native Americans

(Disparate treatment was not considered to be an adequate definition of unfair discrimination, however, because some selection procedures were applied equally to all applicants, but screened out a disproportionate number of members of protected classes. Definition established by first major selection court case, Griggs v. Duke Power in 1971.)

so21 adverse impact does not equal unfair discrimination
SO21: Adverse impact does not equal unfair discrimination
  • Adverse impact suggests that unfair discrimination may have occurred, but it does not, by itself, prove that unfair discrimination has actually occurred

If the organization can prove that its selection procedures are job related (valid), and that individuals who score better on the selection procedure perform better on the job, then adverse impact is OK.

(repeat second point; in this case, adverse impact would simply be the result of fair discrimination)

so21 two other defenses for adverse impact
SO21: Two other defenses for adverse impact
  • There are two other legal defenses that organizations can use to defend adverse impact
    • If the selection procedure has “business necessity”
    • If the selection procedure is a “bona fide occupational qualification”
      • If you are really cool, a “BFOQ”

(I’ll explain what these things mean in a moment)

summary unfair discrimination
Summary: Unfair discrimination
  • There are two legal definitions of unfair discrimination
    • Disparate treatment (= intentional discrimination)
    • Disparate/adverse impact
      • However, adverse impact does not mean unfair discrimination has actually occurred
      • The organization has three legal defenses that make “adverse impact” legal (fair discrimination)
        • The selection procedures are job related
        • The procedures have business necessity
        • The procedures are a BFOQ
so22 shifting burden of proof model intro
SO22: Shifting burden of proof model, intro
  • Shifting burden of proof model is used in all Title VII adverse impact cases
  • The burden of proof is a very important and critical legal concept, and while it may seem like a subtle issue, it is not
  • 22B. This model differs considerably from criminal cases and what you have seen on TV
    • In criminal cases, a defendant (in this case the company) is considered innocent until proven guilty
    • The burden of proof always rests with the prosecution, beyond a “reasonable doubt”
    • Not so in EEOC Title VII adverse impact cases
      • As the name of the model suggests, the burden of proof shifts

(by far the most common cases, since it is very difficult to prove intentional discrimination - unless, black jelly beans, “Any man…” Spend quite a bit

Of time on this - very important)

so22a shifting burden of proof model diagram and explain
SO22A: Shifting Burden of Proof Model, diagram and explain

Plaintiff:

Adverse impact

Prime facie case

Defendant:

Three defenses

Validity

Business Necessity

BFOQ

Plaintiff:*

Alternative procedure,

less adverse impact

1. Company “innocent”: Plaintiff has the burden of proof to demonstrate

adverse impact has occurred (prime facie case if proven)

2. Company “guilty”: Defendant must prove its innocence by demonstrating

selection procedure is valid, has business necessity, or is a BFOQ

3. Company “innocent”: But, if plaintiff can demonstrate that an alternative

selection procedure exists that historically results in less adverse impact,

plaintiff “wins”

*No plaintiff has ever won a case at this step; so while legally possible, it has

yet to be shown to be practically possible.

nfe history of shifting burden of proof model
NFE: History of Shifting Burden of Proof Model
  • Established by the Supreme Court in the first landmark selection case, Griggs v. Duke Power, 1971
  • Reversed by the Supreme Court in Wards Cove Packing Co. v. Antonio, 1989
    • Burden of proof rested squarely and almost solely on the plaintiff, making it very difficult for anyone to prove adverse impact
  • Restored by the CRA of 1991
so23 the three defenses
SO23: The three defenses

1. Validity (by far the easiest defense to win)

Organization establishes that the tests are job-related

2. Business necessity (next easiest to win)

If the selection procedure were not used, the safety of workers or customers would be put at great risk. Effects on economics costs and profits/loss of business is not acceptable under business necessity.

  • Commercial airlines requiring pilots have a specified number of flight hours - not subject to the same proof that those hours are job-related
  • Before ADA, MMPI for police officers - you don’t want to put guns in the hands of emotionally unstable individuals
    • NY Court System - court officers

(to prove, would have to hire pilots with less flight hours and show they didn’t perform as well)

so23 the three defenses cont
SO23: The three defenses, cont.

3. Bona fide occupational qualification: BFOQ (almost impossible to win this defense, very limited application)

A person must be of a particular sex, race, color, religion, or national origin in order to perform the job adequately

  • Restricted to sex and religion for jobs like rest room attendants and church administrators
    • Recently expanded to nursing homes, medical facilities, and human service organizations – customer privacy, not customer preference; personal needs, bathing, taking a client to the bathroom
  • Legally it is impossible to frame a BFOQ defense for race, color, or national origin
    • An Italian restaurant cannot hire only Italian servers or chefs, a Chinese restaurant cannot hire only Chinese servers or chefs, etc.
    • What about Hooters???

(courts have interpreted BFOQ very, very narrowly)

nfe hooters and eeo
NFE: Hooters and EEO
  • Hooters hires only females as servers, but does hire males as cooks and dishwashers
  • Female servers are required to sign and affirm the following (from Wikipedia):
    • My job duties require I wear the designated Hooters Girl uniform
nfe hooters and eeo cont
NFE: Hooters and EEO, cont.
  • My job duties require that I interact with and entertain the customers
  • The Hooters concept is based on female sex appeal and the work environment is one in which joking and sexual innuendo based on female sex appeal is commonplace
  • I do not find my job duties, uniform requirements, or work environment to be offensive, intimidating, hostile, or unwelcome
nfe hooters and eeo cont47
NFE: Hooters and EEO, cont.
  • Several discrimination lawsuits have been brought against the chain
  • The lawsuits have been settled out of court or dropped by the EEOC (1995 was the big test)
  • Some after an advertising campaign featuring a St. Petersburg, FL, Hooters kitchen manager (Vince Gigliotti) dressed in a Hooters Girl serving uniform
so25 adverse impact statistics intro
SO25: Adverse impact statistics, intro
  • Several different types of statistics can be used to determine whether adverse impact exists
  • There are two broad categories
    • Stock
    • Flow
  • However, companies only have to report statistics for a demographic group if that demographic group constitutes at least 2% of the labor market for the job; that is, adverse impact is only relevant if the demographic group makes up at least 2% of the labor market
so25 adverse impact statistics intro49
SO25: Adverse impact statistics, intro
  • Stock statistics

Stock statistics consider the proportion of qualified minorities in the relevant labor market in comparison to the proportion of minorities in the relevant position

  • Flow statistics (data gathered at two different points of time to determine the “flow” of applicants through the selection process)

Compares the proportion of minorities who applied and were selected to the proportion of non-minorities who applied and were selected

(define both, them come back to each)

so25a two components of the relevant labor market
SO25A: Two components of the “relevant labor market
  • Stock statistics

Stock statistics consider the proportion of qualified minorities in the relevant labor market in comparison to the proportion of minorities in the relevant position

  • Relevant Labor Market – two important components
    • Geographical region/location, depends upon
      • Scope of employer’s recruiting efforts
      • Availability of public transportation
      • Interest among prospective employees in working for the employer in question (how far are individuals willing to commute)
    • Skill level of the individuals, special qualifications individuals need for the job
      • Number of electrical engineers in an area is quite different than the general population

(These are very difficult to determine – often before a case gets to court – spend considerable time determining RLM)

so25a two components of the relevant labor market51
SO25A: Two components of the “relevant labor market”
  • Determination of RLM is
    • Important (can make the difference between whether or not adverse impact exists)
    • Difficult
  • Why is it difficult?
    • Depends upon the type of job
      • RLM for a professor is the country
      • RLM for a secretary is the local region
      • What’s the RLM for an engineer?
    • What constitutes the “local region?”
      • In Kalamazoo? Kalamazoo, Portage, Marshall??
      • In NYC? The local region would be much larger, 1.5 or 2 hour commutes
  • Often considerable time is spent in a court case determining what the RLM actually is
so25a two components of the relevant labor market intro
SO25A: Two components of the “relevant labor market,” intro
  • Skill level is also critical
  • Example

An engineering firm has 225 engineers. Of those, 10 are female. Thus, 4.4% of the engineers are female.

The percentage of female engineers in the relevant labor market is 4%.

Thus, no adverse impact exists.

However, now assume that the percentage of female engineers in the relevant labor market is 10%.

Now adverse impact exists.

(This example illustrates the importance of the skill level; in both cases, the % of female engineers is the same; but in the second, there is a greater

Percentage of female engineers in the RLM, and thus adverse impact exists)

so25a two components of the relevant labor market nfe
SO25A: Two components of the “relevant labor market, NFE”
  • RLM is determined from reports such as:
    • US census
    • Chamber of commerce
    • Industry reports
  • Geographical units are usually reported in three forms
    • Country
    • State
    • Standard Metropolitan Statistical Area
      • Region surrounding a city or town
25b legal stock statistic
25B: Legal Stock Statistic

Number of skilled female

engineers in the labor force

Number of female

engineers in the organization

-------------------------------

-------------------------------

VS.

Total number of

engineers in the organization

Total number of skilled

engineers in the labor force

(labor force = relevant geographical region)

25b nfe before wards cove and civil rights act of 1991
25B: NFE, Before Wards Cove and Civil Rights Act of 1991

Number of female

engineers in the organization

Number of skilled female

engineers in the labor force

-------------------------------

-------------------------------

VS.

Total number of skilled

engineers in the labor force

Total number of

engineers in the organization

Number of females

in the labor force

VS.

-------------------------------

Total number of people

in the labor force

Griggs v Duke Power, 1971; more conservative, favors the organization, makes sense)

25b how did the comparison change nfe
25B: How did the comparison change, NFE
  • Thus, before Wards Cove & CRA 1991 the comparison was:

The percentage of minorities in the position within the company to the percentage of minorities in the relevant geographical region

  • After Wards Cove and CRA 1991 the comparison is:

The percentage of minorities in the position within the company to the percentage of qualified minorities in the relevant geographical region

      • The % of females in the relevant geographical region may be 46%; however,
      • The % of females who are engineers in that same geographical region may be only 4. %
    • The change makes it more difficult to establish adverse impact, but is a much more reasonable standard
so26 four fifths 80 rule
SO26: Four-fifths (80%) rule
  • The most common flow statistics used to determine adverse impact:
    • Four-fifths (80%) rule
    • Standard deviation rule
  • I’m focusing on the 4/5ths or 80% rule
    • This is the most common statistic used
    • Recommended in the Uniform Guidelines on Employee Selection Procedures
      • Which is probably why it is the most commonly used statistic
so26 four fifths 80 rule58
SO26: Four-fifths (80%) rule
  • Four-fifths or 80% rule (for exam)

For any selection instrument or procedure, adverse impact is shown if the passing rate of the protected class is less than 80% of the highest passing rate of any other demographic group*

*Note very, very carefully that the comparison is not made to the non-minority demographic group (whites or males), but to the demographic group that has the highest passing rate, whether or not that is the non-minority demographic group (whites or males) or another protected class.

so26 how to calculate adverse impact using the 4 5ths rule
SO26: How to calculate adverse impact using the 4/5ths rule

1. Determine passing rates for each relevant demographic group

  • Whites, Blacks, Hispanics, Asians, Native Americans
  • Males, Females
  • NOT white females, white males, black females, black males, hispanic females, hispanic males, etc.

2. .80 X passing rate of group with the highest rate

3. If the passing rate of the demographic group falls below the number in the second step, adverse impact has occurred.

so26 example and calculations
SO26: Example and calculations

Step 1: Determine passing rates for each group

Step 2: .80 X highest passing rate

.80 X 52% = 42%

Step 3: Compare passing rates to highest rate

Asians, 43% is greater than 42%: No adverse impact

Hispanics, 30% is less than 42%: Adverse impact

(ask if anyone has done them; also, notice, in this example the whites have the highest passing rate; but….)

so28 eeo vs aa
SO28: EEO vs. AA
  • Equal Employment Opportunity

Every individual is treated the same and every individual who is equally qualified has an equal opportunity for employment, promotions, etc.

    • No preferential treatment
    • Professional selection issue (this is exactly what selection systems are designed to do - hire the best applicants)
    • Not controversial except for racists, sexists, etc.
so28 eeo vs aa62
SO28: EEO vs. AA
  • Affirmative Action

Redresses historical imbalances and increases number of minorities hired in the work place at a faster rate than what would occur simply through EEO

    • Can result in preference being given to individuals in certain demographic groups
      • If two candidates are equally qualified, preference will be given to the minority candidate
      • A less qualified minority may be hired instead of a more qualified majority
    • Social policy, not a “professional” selection issue
    • Extremely controversial

(pros and cons, I have been on both sides. Denied a job with a very excellent, major company after I had interned there for 2 years in favor of a minority

Female who had not worked for the company. Boss stupidly told me I was a 1 pointer, she was a 2 pointer. PA - hired into a position that cold only

Be given to a female or minority. Didn’t tell me, when I found out - I was angry, hurt. Did not want to be hired because. Started in a hole with colleagues

Later vindicated - white male I was in competition with - he turned out to be a dufus.

nfe affirmative action different and more controversial than eeo
NFE: Affirmative Action: Different and more controversial than EEO
  • Advocates of AA
    • EEO often does not exist
    • Historical imbalances exist from past discrimination
  • Opponents of AA
    • Violation of basic principles of justice (fairness)
    • Brands minorities as inferior
nfe affirmative action different and more controversial than eeo64
NFE: Affirmative Action: Different and more controversial than EEO
  • Affirmative Action
    • New York Herald article, circa 1900
      • The poor and illiterate class that is a national menace and cannot be disregarded with safety
        • Immigrants from Asia
        • Immigrants from Southern Europe
    • Not to mention immigrant Irish who were severely persecuted
    • “The rights of a lot of your foreparents were not recognized until the government stepped in and affirmatively lifted them up”

(Kenneth Brown, UM, 2004)

nfe affirmative action different and more controversial than eeo65
NFE: Affirmative Action: Different and more controversial than EEO
  • Affirmative Action
    • Threats to college-diversity programs pose risks for boys
      • What about AA for boys being admitted to college?
      • Admissions preferences are being used to maintain a balance now when more girls attend college than boys, and have better qualifications
    • What about other types of preferences?
      • What about athletes?
      • What about legacy? (preferences for children of alumni)
      • Justice Dept. sued Illinois State University for giving preference to minority and women in a janitorial training program, but did not address the fact that veterans were given the same preference
nfe proposition 2 michigan
NFE: Proposition 2, Michigan
  • Proposition 2, passed in November, 2006

Bans public institutions from using AA programs that give preferential treatment to groups or individuals based on race, gender, color, ethnicity, or national origin for employment, education and contracting purposes

nfe proposition 2 michigan some history
NFE: Proposition 2, Michigan: Some history
  • In Michigan, in 1995, the admissions policies of both the undergraduate and law school at UM were challenged because of AA policies
  • The law school admission policy was found to be legal, the undergraduate admission policy was found to be illegal
    • Undergraduate policy awarded 20 points on to the “admission score” for any underrepresented minority
  • Proposition 2 was sponsored by the same individuals that sponsored a similar proposition (Prop 209) in CA about 10 years ago, and the individual (plus advocates) of the individual who was denied admission to the law school
nfe proposition 2 vs ofccp
NFE: Proposition 2 vs. OFCCP
  • How does Proposition 2 affect WMU? Seem to have contradictory laws with OFCCP requiring AA and Proposition 2 banning it
    • Federal laws supersede state laws, thus in situations where the OFCCP laws require affirmative action for hiring, they will take precedence (i.e., hiring of staff and professors at WMU)
    • Federal laws do not address admissions or scholarships (or hiring contractors) based on diversity, so Proposition 2 will take precedence
  • But who knows for sure – these laws are quite complex and it may take awhile to figure everything out!
end of unit 1

End of Unit 1

Questions? Comments?

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