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CHAPTER 7 EMPLOYMENT LAW

CHAPTER 7 EMPLOYMENT LAW. Federal Anti-Discrimination Laws. Equal Pay Act (1963) Prohibits wage discrimination based on gender for jobs that require equal skill, effort, and responsibility and are performed under similar working conditions. Exceptions to equal pay: Bona fide seniority systems

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CHAPTER 7 EMPLOYMENT LAW

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  1. CHAPTER 7EMPLOYMENT LAW

  2. Federal Anti-Discrimination Laws • Equal Pay Act (1963) • Prohibits wage discrimination based on gender for jobs that require equal skill, effort, and responsibility and are performed under similar working conditions. • Exceptions to equal pay: • Bona fide seniority systems • Quality of job performance (i.e., merit-based pay systems) • Quantity of output (i.e., piece-rate pay systems) • Factors (contingencies) other than sex (gender)

  3. Federal Anti-Discrimination Laws • Civil Rights Act (1964) • Title VII prohibits discrimination in employment based on race, color, religion, sex, and national origin. • Covers conditions of employment: hiring, firing, promotion, transfer, compensation, and admission to training. • Applies to all private employers with 15 or more employees, state and local governments, educational institutions, employment agencies, and unions. • Established the Equal Employment Opportunity Commission (EEOC) to oversee and enforce Title VII and all other federal labor laws.

  4. Federal Anti-Discrimination Laws • Age Discrimination Act (1967) • Prohibits employment discrimination against employees who are age 40 or older. • Prohibits the setting of mandatory retirement ages except in cases of public safety (e.g., airline pilots). • Amended 1990 by Older Workers Protection Act which prohibits discrimination in the provision of benefits and the required signing of age discrimination waivers at layoff. • Covers all employers including the federal government.

  5. Federal Anti-Discrimination Laws • Rehabilitation Act (1973) • Prohibited discrimination by federal (but not private) contractors against handicapped applicants or employees. • Definition of handicapped individuals: • Persons with physical or mental impairment that substantially limits one or more major life activities. • Persons with a history or record of such impairment. • Persons regarded as having such an impairment. • Handicapped individuals must be “otherwise qualified” to perform (with reasonable accommodation) the essential functions of the job (e.g., no blind bus drivers).

  6. Federal Anti-Discrimination Laws • Pregnancy Discrimination Act (1978) • Prohibits employers from discriminating against pregnant employees by requiring pregnancy leaves and that pregnancy be treated as any other medical disability. • Does not require reinstatement of returning employee to same job. • Does not allow employer to determine dates of leave. • Employer cannot refuse to hire or promote on the basis of pregnancy. • Employer cannot provide health plans that do not cover pregnancy.

  7. Federal Anti-Discrimination Laws • American With Disabilities Act (1990) • Prohibits all employers with 15 or more employees from discriminating against handicapped persons. • The courts have issued ambiguous and conflicting rulings on “medical conditions”,“major life activities”, and what constitutes a “disability.” Decisions are made on a case-by-case basis. • Determination of “reasonable accommodation”: • Cost of accommodation and resources of employer • Nature of the job and workplace safety issues • Any relevant collective bargaining provisions

  8. Federal Anti-Discrimination Laws • Civil Rights Act (1991) • Extended Title VII coverage to federal employees. • Allows litigants to sue for compensatory and punitive damages. • Requires a heavier “burden of proof” on the part of employers in rebutting claims of discrimination. • Provided “extraterritorial enforcement” of federal labor laws in protecting U.S. employees on overseas assignments where Title VII compliance does not violate local country laws.

  9. Federal Anti-Discrimination Laws • Family and Medical Leave Act (1992) • Requires employers to provide up to 12 weeks of unpaid leave for the birth, adoption, or serious illness of a child, family member, or the employee during a 12 month period. • Act only covers organizations with fifty or more employees. • Employee must have been employed a minimum of 25 hours per week or 1,250 hours yearly. Employees in top 10% of employer’s salary range are not covered by the Act. • Employer is required to continue employee’s group health coverage during leave. • Employee must be allowed to return to same/equivalent job.

  10. EEOC Enforcement of Federal Law • Burden of proof initially falls on the complainant (employee) to demonstrate: • Disparate treatment in deliberate discrimination of a “protected class” individual or • Disparate (adverse) impact as a result of the application of a standard or treatment applied to all individuals that results in differential outcomes or consequences for protected groups; usually demonstrated statistically using the four-fifths rule. • Four-fifths Rule states that the selection rate for protected class is not 80% of the selection rate for the majority class then a prima facie case of adverse impact is established.

  11. EEOC Enforcement of Federal Law • Employers rebutting a discrimination case: • Must demonstrate job-relatedness of any criteria utilized in a selection process. • Can claim a bona fide occupational qualification (BFOQ) that requires the employee to possess a particular personal characteristic or be a member of a particular group. • Can use of a bona fide seniority system that was not set up to intentionally discriminate against a protected class. • Can claim “business necessity”; that the selection criteria are essential for safe and efficient operations of the firm.

  12. Affirmative Action • Affirmative Action Plans • Require organizations to develop, implement, and maintain a program to make special efforts to insure that their workforce is representative of the society where the business operates. • Are required for organizations with 100 or employees and with $50,000 or more in federal contracts. • Filed with the Department of Labor and monitored by the Office of Federal Contract Compliance. • Are considered temporary measures to correct the “underutilization” of certain protected classes.

  13. Sexual Harassment • Supreme Court rulings: • Meritor Savings Bank • Sexual harassment is a form of sexual discrimination under Title VII. • Oncale v. Sundowner Offshore Services • Same-sex harassment is actionable under Title VII. • Sexual harassment (definition) • is an individual’s clear rejection of an offensive and inappropriate (“unwelcome”) advance.

  14. Forms of Sexual Harassment • Quid pro Quo • The promise or use of work-related benefits or threats to bargain with or coerce an individual for sexual favors. • Hostile working environment • The presence (perceived or actual) of an offensive or threatening environment. • Harassment standards used by the court: • The “reasonable woman” test. • Pattern of behavior (frequency and pervasiveness) or isolated event/act of an individual. • Response of the organization to the complaint.

  15. Sexual Harassment

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