Chapter 11

1. Chapter 11 Complying with Workplace Justice Laws

2. Gaining Competitive Advantage • Marriott’s Open Door Policy—”Guarantee of Fair Treatment” to handle employee complaints • Bring complaint to supervisor, next to the supervisor’s boss, and finally the individual further up the managerial ladder • Not working—large number of discrimination complaints

3. Marriott • Solution—to Implement a Peer Review Process • Surveyed employees • Conducted focus groups—”What characteristics should a complaint resolution system include?” • Employees wanted impartial listeners who would promptly follow up • Utilize open-door policy and then they had the option of bringing it to the peer review panel

4. Marriott • Employees feel panel is fair and objective • Managers sees the panel as an opportunity to reinforce and clarify its corporate policy and rules • What about bottom-line results? • First year EEO charges dropped by 50% and by 83% in the second year

5. Linking Workplace Justice to Competitive Advantage • Workforce justice laws deal with the fairness of organizational practices that dictate the day-to-day treatment of employees • How do we gain a competitive advantage? • Lower litigation costs • Positive ee attitudes and behavior • Excellent company image • How do we gain a competitive advantage? • 70% all employment claims result in monetary awards—average is $1.5 million

6. Linking Workplace Justice to Competitive Advantage • If an ee perceives unjust treatment they normally respond by engaging in activities that will harm a company’s competitive advantage • Lawsuits • Staging protests • Become less committed to the organization • Poor organizational citizens Topic is critical today due to growing diversity in organizations

7. Linking Workplace Justice to Competitive Advantage • Promote a favorable company image it helps with recruiting efforts (fair treatment of ees) • Best companies to work for—diversity is embraced

8. Workplace Justice & Employment Discrimination • Sexual harassment has been a long standing problem and really came to light in the mid 1970s • Title VII of the Civil Rights Act --charges rose from 6,127 in 1990 to over 15,000 in 2001 --87% all charges filed by women • What types of problems does this cause employers? • Turnover • Absenteeism • Low morale • Lack of effective teamwork • Poor productivity • Stress and/or psychological problems

9. Workplace Justice & Employment Discrimination • Forms of sexual harassment? • Quid Pro Quo—”this for that” –”if you do this for me, I’ll do that for you.” (sexual favors in order to be hired, promoted, granted a pay raise, or allowed to keep a job • Hostile environments are those in which ees are subject to unwelcome, intimidating working conditions Discuss Taking a Close Look At—11-1 page 344

10. Workplace Justice & Employment Discrimination • How does one prove a hostile environment case? • Ee has to prove that the disputed behavior was unwelcome, based on gender, and abusive • To be considered sexual harassment, the challenged behavior must be gender based • Challenged behavior must be severe or abusive (severity of acts, frequency, and the total number of days they have been occurring)

11. Workplace Justice & Employment Discrimination • How should an employer deal with sexual harassment? • Establish a written sexual harassment policy • Provide supervisory training that focuses on the legal definition of sexual harassment • Establish investigative guidelines that maintain ee confidentiality • Establish a committee composed of both men and women to investigate sexual harassment claims • Establish a means of detecting unreported instances of sexual harassment Discuss Exhibit 11-1 EEO Guidelines page 347

12. Workplace Justice & Employment Discrimination • Pregnancy Discrimination—Pregnancy Discrimination Act • May not discriminate on the basis of pregnancy, childbirth, or related medical conditions • Need to be treated the same way as ees who are temporarily disabled for other reasons • FMLA of 1993 (50 or more ees)-grant workers up to 12 weeks of unpaid leave per year for the care of a newborn child, an ill family member, or their own illness

13. Workplace Justice & Employment Discrimination • How does it protect employers? • Allows employers to exempt ees with the highest earnings • Requires ees to reimburse the employer for insurance premiums paid during the leave if they are able to return to work, yet choose not to do so.

14. Employee Misconduct • Misconduct occurs when an ee commits an infraction of workplace rules • Procedures are spelled out regarding the process to follow • Effective policies encompass the notions of just cause and due process • Just cause—that the cause of action should be a fair one • Due process—means the ee should be informed of the charges against them and be given an opportunity to defend themselves

15. Employee Misconduct • Progressive Discipline System—each step increases in severity: • Oral warning—ee informed of the incorrect behavior and how to correct it • Written warning • Probation • Suspension • Termination (move to this step due to theft, drug use, or sabotage Progressive Discipline process varies based on organization culture and philosophy

16. Poor Performance • Workers may be discharged for poor performance • When the charge is legally challenged a company must prove that the charge was performance-based and not discriminatory • Key is a solid performance appraisal system • Set clear performance standards • Needs to be communicated to ee • Managers need to know how to complete ratings

17. Poor Performance • What else would help the employer’s case? • Notes, memos, records of customer complaints, or eye witness testimony of poor performance • Records that show the discharged individual has been treated similar to others in organization with similar performance problems • Evidence manager had coached the employee to improve substandard performance

18. Layoffs & Discrimination • Most frequent challenge to layoffs is age discrimination—employer purges organization of older workers (save money) • How can organizations justify layoffs? • Lagging sales • Growing inventory • Depressed economy • What else should an organization due prior to a layoff? • Transferring ees to vacant positions • Place in newly created part time positions • Work a shorter workweek • Remove all contractors and temporary workers • Pay Cuts

19. Layoffs & Discrimination • Claims of discrimination can also be refuted by utilizing statistics—showing that the workforce stayed the same with respect to age, sex, race, etc., after the layoff. • Companies may offer voluntary early retirement in conjunction with a layoff—incentives should be more generous than would occur in a layoff • Could backfire—when a retiree later states it was age discrimination and that they were coerced into retirement

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

21. Workplace Rules • Employers impose rules to restrict certain types of behaviors (i.e., theft, insubordination, drug use, or horseplay • Courts have recognized the need for workplace rules Controversial rules set by employers --No smoking rules --well being of non-smokers --financial—higher insurance rates for smokers

22. Workplace Rules • Rules governing romantic relationships • Relationships with competitors—protect trade secrets • Bar managers from having relationships with non-management personnel (favored ee would be more likely to be granted rewards) • Misconduct outside the workplace: • Suspend or discharge ees who have been arrested, jailed, and/or convicted of a crime

23. Wrongful Termination & Employment-At-Will • Employment-At-Will—legal doctrine that permits an employer to discharge an ee for any reason, even an unfair one • U.S. only industrialized nation in the world that does not protect all workers from wrongful termination Discuss Exhibit 11-5 page 360

24. Exceptions to the Employment-At-Will Doctrine • Public policy—any doctrine that serves the needs of society; if public policy is violated, society will suffer harm • What are some examples? • Serving on jury duty • Exercising his or her right to file a worker’s compensation claim • Whistle blowing (Enron) • Participating in a legal proceeding contrary to employer’s wishes

25. Exceptions to the Employment-At-Will Doctrine • What else? • Refusing to commit perjury • Refusing to commit an unlawful act, like fudging tax returns • Refusing to steal secrets from a company’s competitors • Implied contract– guarantee of long term employment in an interview or employee handbook

26. Preventing Wrongful Termination • Include an at-will statement on the application form, such as the following one: I understand that my employment may be terminated, with or without cause, at any time, at the option of either the company or myself • Place a disclaimer in the employee handbook, stating that the document is not to be interpreted as a contract—that it is provided as a matter of information only • Train interviewers to avoid making comments to applicants that imply long-term job security One must always document to ensure their discipline and discharge policies are fair