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Legal Compliance effecting the Staffing Area. MANA 4328 Dennis C. Veit [email protected] Sources of Laws and Regulations. Source Example Common LawEmployment at will, Workplace tort Constitutional LawFifth Amendment/Fourteenth Amd

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Legal compliance effecting the staffing area

Legal Compliance effecting the Staffing Area

MANA 4328

Dennis C. Veit

[email protected]


Sources of laws and regulations

Sources of Laws and Regulations

  • Source Example

    • Common LawEmployment at will, Workplace tort

    • Constitutional LawFifth Amendment/Fourteenth Amd

    • Statutory lawCivil Rights Act, Information Act,

      Age Discrimination, ADA, Rehabilitation a.Immigration Reform and Control act

      Fair Credit Reporting Act, Polygraph Protection act, Reemployment act

      State and local laws

      Civil Service laws

    • Executive order11246, EEOC, DOL, OFCCP,

      Department of Homeland Security

      State fair employment practice agencies


Major federal eeo aa laws affecting the staffing area

Major federal EEO/AA laws affecting the Staffing area

  • Title VII of the Civil Rights Acts (1964, 1991)

  • Age Discrimination in Employment Act (1967)

  • Americans With Disabilities Act (1990, 2008)

  • General Information Nondiscrimination Act (2008)

  • Rehabilitation Act (1973)

  • Executive Order 11246 (1965)


The employment relationship

The Employment Relationship

  • Employer-employee

    • Most prevalent form of employment relationship

    • Involves an agreement between employer and employee on terms and conditions of employment

      • Results in an employment contract

  • Independent contractors

    • Are not considered employees, in a legal sense, of employer

  • Temporary employees

    • Do not have special legal stature


Laws and regulations

Laws and Regulations

  • Need for laws and regulations

    • Balance of power

    • Protection of employees

    • Protection of employers

  • Sources of Laws and Regulations

    • Common law

    • Constitutional law

    • Statutory law

    • Executive order

    • Agencies


Staffing laws

Staffing Laws

Classifying Employees

  • FLSA and Internal Revenue Code

    Equal Opportunity

  • Civil Rights Acts (1964 and 1991)

  • ADA and ADEA

    Affirmative Action

  • Executive Order 11246

    Immigration

  • Immigration Reform and Control Act

    Wages and Benefits

  • Equal Pay Act


Exh 2 3 major federal aa laws general provisions

Exh. 2.3: Major Federal/AA Laws: General Provisions


Ex 2 3 major federal aa laws

Ex. 2.3: Major Federal/AA Laws

2-8


Civil rights act of 1964 title vii

Civil Rights Act of 1964 Title VII

(a) It shall be an unlawful employment practice for an employer –

DISPARATE TREATMENT

(1) to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's race, color, religion, sex, or national origin; or

ADVERSE IMPACT

(2) to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's race, color, religion, sex, or national origin.


Disparate treatment

Disparate Treatment

  • Involves allegations of intentional discrimination where employer knowingly discriminated on basis of specific characteristics

  • Evidence

    • May be direct

    • May consist of a mixed motive

    • May be inferred from situational factors

      • 1. Person belongs to a protected class

      • 2. Person applied for, and was qualified for, a job employer was trying to fill

      • 3. Person was rejected despite being qualified

      • 4. Position remained open and employer continued to seek applicants as qualified as person rejected


Disparate adverse impact

Disparate / Adverse Impact

  • Focuses on effect of employment practices, rather than on motive or intent underlying them

    • As a result of a protected characteristic, people are adversely affected by an employment practice

  • Evidence -- Involves use of statistics

    • Exh. 2.5: Types of Disparate Impact Statistics

      • Applicant flow statistics

        • Four-fifth’s rule - An employment practice has disparateimpact if hiring rate for minority group is less thanfour-fifths (or 80%) of hiring rate for majority group

      • Stock statistics

      • Concentration statistics


Litigation process eeoc

Disparate treatment

Disparate impact

Show intent?

Yes

No

Prima facie case

Disparate treatment - intentional practice

Disparate impact - effect of practice

Employer’s rebuttal

Nondiscriminatory reason(s) for practice or show BFOQ

Practice job-related and consistent with business necessity

Plaintiff’s rebuttal

Reason is a pretext for discrimination

Practice not job-related; employer does not adopt practice with less disparate impact

Remedies

Consent decree; compensatory and punitive damages

Consent decree; equitable relief, i.e. back pay

Litigation Process - EEOC


Exh 2 5 types of disparate impact statistics

Exh. 2.5: Types of Disparate Impact Statistics

2-13


Equal opportunity vs affirmative action

Equal Opportunity vs. Affirmative Action

Equal Opportunity

  • Employment practices must guarantee equal opportunity to employees and applicants based on protected class differences.

  • Composition of workforce depends on applicants as long as all groups have equal opportunity.

    Affirmative Action

  • Employment practices should encourage a workforce that reflects the gender and racial composition of the local population.

  • Companies should seek applicants and provide opportunities for underutilized minorities to guarantee representation in the workforce.

  • No business is ever required to hire someone not qualified for a job.


Equal opportunity vs affirmative action1

Equal Opportunity vs. Affirmative Action

Equal Opportunity

  • Applies to private employers with more than 15 employees.

  • Defined by a number of laws and court cases

  • Enforced by the EEOC

  • EEOC responds to complaints

    Affirmative Action

  • Applies to government contractors and court-ordered employers.

  • NO affirmative action requirements for others.

  • Defined by Executive Order 11246

  • Written document with targets for minority hiring.

  • Enforced by the OFCCP

  • OFCCP responds to complaints and conducts audits


Enforcement by eeoc initial charge and conciliation

Enforcement by EEOC:Initial Charge and Conciliation

  • Charge filed

  • Investigation to determine “reasonable cause”

  • If “reasonable cause” found, conciliation is pursued

    • Voluntary settlement process

    • Preferred method of settlement

  • If EEOC decides not to pursue a claim, a “right to sue” letter is issued to complaining party

  • Complementing conciliation is mediation

    • Neutral, third-party mediates dispute to obtain agreement to resolve dispute


Exh 2 7 basic litigation process eeoc

Exh. 2.7: Basic Litigation Process - EEOC


Protected groups

Protected Groups

  • Race

  • Color

  • Religion

  • Sex

  • National origin

  • Age

  • Disability


Eeo aa laws specific staffing provisions

EEO / AA Laws:Specific Staffing Provisions

  • Civil Rights Act of 1964

    • Unlawful employment practices

    • Establishment of disparate impact

    • Disparate treatment

    • Mixed motives

    • Bona fide occupational qualification (BFOQ)

    • Testing

    • Test score adjustments

    • Seniority or merit systems

    • Employment advertising

    • Pregnancy

    • Preferential treatment and quotas


Eeo aa laws specific staffing provisions1

EEO / AA Laws:Specific Staffing Provisions

  • Age Discrimination in Employment Act (1967)

    • Prohibited age discrimination

    • BFOQ

    • Factors other than age

    • Seniority systems

    • Employment advertising


Eeo aa laws specific staffing provisions2

EEO / AA Laws:Specific Staffing Provisions

  • Americans with Disabilities Act (1990)

    • Prohibited discrimination

    • Definition of disability

      • Physical and mental impairments substantially limiting a major life activity


Eeo aa laws specific staffing provisions3

EEO / AA Laws:Specific Staffing Provisions

  • Americans with Disabilities Act (1990)

    • EEOC clarifications

      • Impairment - “A physiological disorder affecting one or more of a number of body systems or a mental or psychological disorder.”

      • Expanded major life activities include “sitting, standing, lifting, and mental and emotional processes such as thinking, concentrating, and interacting with others.”

      • Whether an impairment is substantially limiting depends on its nature and severity, duration or expected duration, and its permanency or long-term impact.

      • To be substantially limiting, impairment must prevent/significantly restrict a person from performing a class or broad range of jobs in various classes.


Eeo aa laws specific staffing provisions4

EEO / AA Laws:Specific Staffing Provisions

  • Americans with Disabilities Act (1990)

    • Qualified individual with a disability

    • Essential job functions

    • Reasonable accommodation and undue hardship

    • Selection of employees

    • Medical exams for job applicants and employees

    • Affirmative action


Eeo aa laws specific staffing provisions5

EEO / AA Laws:Specific Staffing Provisions

  • Rehabilitation Act (1973)

    • Prohibited discrimination

    • Affirmative action

  • Executive Order 11246 (1965)

    • Prohibited discrimination

    • Affirmative action


Other staffing laws immigration reform and control act 1986

Other Staffing Laws: ImmigrationReform and Control Act (1986)

  • Purpose

    • To prohibit employment of unauthorized aliens

    • To provide civil and criminal penalties for violations

  • Prohibited discrimination

  • Employment verification system -- I-9 form

    • Employer must verify individual is not an unauthorized alien and is legally eligible for employment

    • Individuals must offer proof of identity

  • Temporary foreign workers

  • Enforcement

    • Enforced by Department of Justice

    • Noncompliance may result in fines up to $10,000


Other staffing laws employee polygraph protection act 1988

Other Staffing Laws: EmployeePolygraph Protection Act (1988)

  • Purpose

    • Prevent most private employers from usinga polygraph on job applicants or employees

  • Prohibited practices

    • Requiring applicants or employees to take a polygraph

    • Using results of a polygraph for employment decisions

    • Discharging or disciplining individuals for refusal to take a polygraph

  • Examples of instances where polygraph may be used

  • Enforcement

    • Enforced by Department of Labor

    • Noncompliance may result in fines up to $10,000


Other staffing laws fair credit reporting act 1970

Other Staffing Laws: FairCredit Reporting Act (1970)

  • Purpose

    • Regulates organization’s acquisition anduse of consumer reports on job applicants

  • Required compliance

    • Before obtaining a report, organization must

      • Give applicant notice in writing a report may be obtained

      • Obtain written authorization from applicant

    • If an “adverse action” is taken, organization must

      • Notify (written, oral, electronic) applicant of adverse action

      • Provide information of consumer reporting agency to applicant

      • Provide notice of applicant’s rights to applicant

  • Enforcement

    • Enforced by Federal Trade Commission

    • Noncompliance may result in fines up to $1,000


Civil rights act of 1964 title vii1

Civil Rights Act of 1964 Title VII

(a) It shall be an unlawful employment practice for an employer –

(1) to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's race, color, religion, sex, or national origin; or

(2) to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's race, color, religion, sex, or national origin.


Court cases

Court Cases

  • Griggs v. Duke Power (1971)

    • Adverse impacts must be job related

    • Discriminatory intent not sufficient defense

  • McDonnell Douglas vs. Green (1972)

    • To establish prima facie in disparate treatment cases


Presentation of evidence

Disparate Treatment

Adverse Impact

Plaintiff

He or She demonstrates:

a) Protected class

b) Was qualified

c) Was rejected

d) The job remained open

“McDonnell-Douglas Test”

Statistical Tests:

4/5’ths Rule

Defendant

Provides a clear and specific job‑based explanation for actions.

Demonstrates Job relatedness (validity) and business necessity

Plaintiff

Must prove that rejection was discriminatory.

Proves that an alternative practice is available that has less adverse impact

Presentation of Evidence


Selection rate tests

Selection Rate Tests

  • 4/5ths RULE The selection rate for any protected group should be no less than 4/5ths or 80% of the selection rate for the group with the highest rate of selection. If SR1 *.8 > SR2, then Adverse Impact.

  • Number Hired

  • Selection Rate (SR) =

  • Number of Applicants


  • 4 5ths rule

    4/5ths Rule

    Assume 200 employees were selected from a pool of 500 applicants (200 black and 300 white). Of the employees selected 60 were black and 140 were white.

    Selection Rates:

    White = 140 / 300 = 46.7%

    Black = 60 / 200 = 30%

    4/5ths Rule: .467 X .8 = .374 = 37.4%

    Since 30% (actual selection rate) is less than 37.4% (4/5ths

    comparison selection rate) evidence of discrimination exists.


    Defense of discrimination

    Defense of Discrimination

    • Merit

      • Judged on an individual basis

    • Bona Fide Occupational Qualification

      • Must be present for all who hold that job

      • If is required for the job then it does not matter that it has adverse impact

    • Business necessity

    • Seniority


    Civil rights act of 1991

    Civil Rights Act of 1991

    • Followed Wards Cove Packing vs. Antonio (1989)

    • Prohibits “race norming” of tests.

    • Plaintiffs can sue for punitive damages in cases of intentional discrimination.

    • Adverse impact prohibited for each piece of a selection system.

    • Burden of proof on the employer.

    • Prohibits quotas in selection.


    Equal opportunity defined

    Equal Opportunity Defined

    Protected Classes

    • Race, color, religion, sex and national origin

    • Age and disability (added through ADA and ADEA)

      Reverse discrimination

      Disparate treatment vs. Adverse Impact

      Private employers with more than 15 employees.

      EEO does NOT require preferential treatment

      Quotas are illegal

      http://www.eeoc.gov/abouteeo/overview_practices.html


    Eeo applied

    EEO Applied

    • Organizations with more than 15 employees.

    • Uniform Guidelines onEmployee Selection Procedures

    • EEO does NOT require preferential treatment - Quotas are illegal

    • Must keep records of applicants for 6 months

    • Employer must show practices are “job-related for the position in question and consistent with business necessity”

    • Company Defenses

      • Merit

      • Bona Fide Occupational Qualification

      • Business Necessity

    • An “alternative employment practice” must be accepted if shown to meet the business necessity and have less adverse impact.


    Eeo vs affirmative action

    EEO vs. Affirmative Action

    • Equal Employment Opportunity

      • Collection of laws that apply to all organizations

      • Aimed at ending discrimination

    • Affirmative Action

      • Executive Order 11246

      • Applies only to (1) government and contractors (2) court orders and (3) voluntary programs.

      • NO affirmative action requirements for others.

      • Written document with targets for minority hiring.


    Enforcement agencies

    Enforcement Agencies

    Equal Employment Opportunity Commission (EEOC)

    • All private employers with more than 15 employees

    • EEO – 1 for more than 100 employees

      Office Of Federal Contract Compliance Programs (OFCCP)

    • Government contractors or sub-contractors.

    • Covers approximately 26 million or nearly 22% of the total civilian workforce.

    • OFCCP requires a contractor to engage in a self-analysis for the purpose of discovering any barriers to equal employment opportunity.

    • Investigates complaints of discrimination.


    Affirmative action program aap

    Affirmative Action Program (AAP)

    • Develop a written program for each establishment

    • Identify potential problems in the participation and utilization of women and minorities.

    • Gives the specific procedures and the good faith efforts to provide equal employment opportunity.

    • If there is underutilization, provides gives targets (not hard quotas) and timetables.

    • Expanded efforts in outreach, recruitment and training.


    Aap statistics

    AAP Statistics

    • Flow Statistics

      • Examines selection rates by group

      • 4/5 th’s rule / Std. Deviation Rule

    • Availability and utilization analyses

      • Employee distribution compared with local population

      • “Stock Statistics”

    • Concentration Statistics

      • Examining placement of women and minorities by job category


    Availability analysis

    Availability Analysis

    U.T. System determines minority availability by:

    • The minority population in the surrounding labor market.

    • The minority unemployment rate in the surrounding labor market.

    • The percentage of the minority workforce as compared with the total workforce in the surrounding labor market and Texas.

    • The availability of promotable and transferable minorities within U. T. System Administration.

      http://www.eeoc.gov/stats/jobpat/2000/pmsa/2800.html

      http://www.census.gov/hhes/www/eeoindex.html


    Utilization analysis

    Utilization Analysis

    • Compares the % percentage of minorities and women in each Job Group with the calculated % availability of minorities and women.

    • "Underutilized" is defined as having fewer than would reasonably be expected by their availability.


    Concentration statistics

    Concentration Statistics


    Adea 1967 and age discrimination

    ADEA (1967) and Age Discrimination

    • Age Discrimination in Employment Act of 1967

      • Protects employees 70 million workers over 40

      • Nearly 50% of workers

    • Cases most often arise from layoff or dismissal

      • It is legitimate to consider salary in layoffs

      • No standard of “reverse discrimination” for age suits

    • Disparate impact rules apply

      • Adams vs. Florida Power Corp

        • Dismissed by the Supreme Court 2002

      • Smith vs. City of Jackson

        • Affirmed by the Supreme Court 2005


    Americans with disabilities act ada

    Americans with Disabilities Act (ADA)

    • Discrimination is prohibited against individuals with disabilities who can perform essential job functions with reasonable accommodation unless it would cause undue hardship.

    • Employers not required to change work rules if they are business necessity.

    • OFCCP vs. Ozark Airlines (1986) – employers must prove applicant could not perform the job safely.


    Americans with disabilities act ada1

    Americans with Disabilities Act (ADA)

    • Disability is a physical or mental impairment that affects a major life activity.

    • Essential vs. marginal job functions

    • Categories of "reasonable accommodations":

      • changes to a job application process

      • changes to the work environment

      • changes to the way a job is usually done

      • employee training


    Undue hardship

    Undue Hardship

    • “Undue hardship” means significant difficulty or expense.

      • Not only financial difficulty

      • Those that would fundamentally alter the nature or operation of the business.

    • Every request for reasonable accommodation should be evaluated separately taking into account:

      • Nature and cost of the accommodation needed

      • Overall financial resources of the business

      • Number of persons employed by the business

      • Impact of the accommodation on the business


    Record keeping

    Record Keeping

    • EEOC requires that employers keep all personnel records for one year after termination.

    • Written descriptions of benefits plans (such as pensions) and any seniority or merit system.

    • Fair Labor Standards Act (FLSA) and the Equal Pay Act, require employers to keep payroll records for at least three years.

    • All records relevant to wages including wage rates, job evaluations, and seniority and merit systems.


    Employment information report eeo 1

    Employment Information Report (EEO-1)

    • EEO-1 survey is authorized by Title VII and the Equal Employment Opportunity Act of 1972.

    • All employers with 15 or more employees are required to keep employment records as.

    • Employers are required to file an EEO-1 report on an annual basis if they:

      • Employ 100 or more employees

      • Employ 50 or more employees and have Federal contracts totaling $50,000 or more.


    How to proceed

    How to Proceed?

    • What can companies do to navigate the differences between targets and preferences (which are legal) vs. quotas and reverse discrimination (which are illegal)?


    This all means

    This all means….

    • Make sure that selection criteria are fair.

    • Use validated selection tests.

    • Use the same procedure for all applicants.

    • Collect data and keep records.

    • Only ask job-related questions.

    • No medical exams before making job offers.

    • No business is ever required to hire someone not qualified for a job.


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