Jeffrey A. Mello 4e - Chapter 7 - Employment Law

 

EMPLOYMENT LAW

 

Critical Critical Strategic Strategic Issue Issue •• Significant Significant impact impact on on cost cost structure structure  – – Establishment Establishment&&maintenance maintenanceofofinternal internal mechanisms mechanisms  – – Violations Violationscan canresult resultininsignificant significantpenalties penalties •• Makes Makes sense sense to to be be an an equal equal opportunity opportunity employer  employer   – – Avoid vviolations iolations viol  Avoidpenalties penaltiesfor forviolations ations  – – Hire Hiremost mostqualified qualifiedapplicant applicantfor forjob jobor ortotopromote promote most mostqualified qualifiedindividual individual most qualified individual

 

Employment-at-will Employment-at-will Doctrine Doctrinedeveloped developedas aspart partof ofBritish Britishcommon commonlaw lawwhich whichstates statesthe the employment employmentrelationship relationshipshould shouldbe beaaprivate privatematter matterbetween between employee employeeand andemployers, employers,terminable terminableby byeither eitherpart partatatany anytime timefor forany any reason reasonor orno noreason reasonwhatsoever. whatsoever. Applies Appliesto tothe themajority majorityof ofthe theworkforce workforcein inthe theUnited UnitedStates Stateswith withthe the major majorexceptions exceptionsof  of  1) collectivebargaining bargainingagreement agreement 1)aacollective 2) an express written contract 2)terms an express written contract 3) of implied contracts 3) terms of implied contracts 4) determined nedd“public excepti  judiciallydetermi determined 4) judicially “publicpolicy policyexceptions” exceptions” determine exceptions” ons” federal, 5) federal,state stateand andlocal localstatutes statuteswhich whichprohibit 5) federal, prohibitdiscrimination discriminationin in  federal, employment employmentagainst againstgiven givenspecified specifiedprotected protectedclasses. classes.

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws

•• Civil Civil Rights Rights Act Act of of 1866 1866  – – Gave Gave all all citizens citizens right right to to enter enter into into contracts contracts  – – No No remedies remedies for for unjust unjust treatment treatment were were provided provided •• Civil Civil Rights Rights Act Act of of 1871 1871  – – Gave Gave individuals individuals right right to to sue sue ifif they they felt felt they they had had been been deprived deprived ofof rights rightsunder under1866 1866Act Act

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Equal Equal Pay Pay Act Act (1963) (1963)  – – Prohibits Prohibitswage wagediscrimination discriminationbased basedon ongender genderfor for  jobs responsi bility responsib ility equalskill, skill,effort, effort,&&responsibility responsib responsibility ility&&  jobsthat thatrequire requireequal are  jobs that require under equal equal similar skill, working effort, & conditions responsibility respons ibility & areperformed performed under similar working conditions  – – Exceptions Exceptionstotoequal equalpay pay •• Bona Bonafide fideseniority senioritysystems systems •• Quality Qualityof ofjob jobperformance performance(i.e., (i.e.,merit-based merit-basedpay pay systems) systems) •• Quantity Quantityof ofoutput output(i.e., (i.e.,piece-rate piece-ratepay paysystems) systems) • Factors (contingencies) other than sex (gender) • Factors (contingencies) other than sex (gender)

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Civil Civil Rights RightsAct Act(1964) (1964)--Title TitleVII VII  – – Title TitleVII VIIprohibits prohibitsdiscrimination discriminationininemployment employmentbased basedon on race, race,color, color,religion, religion,sex, sex,&&national nationalorigin origin  – – Covers Coversconditions conditionsofofemployment: employment:hiring, hiring,firing, firing,promotion, promotion, transfer, transfer,compensation, compensation,&&admission admissiontototraining training  – – Applies emp loyers employee eemployers mployers employ  Appliestotoall allprivate privateemployers erswith with15 15orormore moreemployees, employees,s, employees, emplo yers state state&&local localgovernments, governments,educational educationalinstitutions, institutions, employment employmentagencies, agencies,&&unions unions  – – Established Established&&Equal EqualEmployment EmploymentOpportunity OpportunityCommission Commission (EEOC) (EEOC)totooversee oversee&&enforce enforceTitle TitleVII VII&&all allother otherfederal federal labor laborlaws laws

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Age Age Discrimination Discrimination Act Act (1967) (1967)  – – Prohibits Prohibitsemployment employmentdiscrimination discriminationagainst against employees employeesage age40 40or orolder  older  employees age of 40 or older  retirement  – – Prohibits setting Prohibits setting ofmandatory mandatory retirementages ages except exceptinincases casesofofpublic publicsafety safety(e.g., (e.g.,airline airlinepilots) pilots)  – – Amended er Workers Old  Amended1990 1990by byOlder Older WorkersProtection ProtectionAct Act Older Act which whichprohibits prohibitsdiscrimination discriminationininprovision provisionofof benefits benefits &&required requiredsigning signingofofage agediscrimination discriminationwaivers waiversatat layoff  layoff   – – Covers Coversall allemployers employersincluding includingfederal federalgovernment government

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Rehabilitation RehabilitationAct Act(1973) (1973)  – – Prohibited Prohibiteddiscrimination discriminationby byfederal federal(but (butnot notprivate) private) contractors contractorsagainst againsthandicapped handicappedapplicants applicantsororemployees employees  – – Definition Definitionofofhandicapped handicappeddindividuals handicappe individuals

•• Persons Personswith withphysical physicalor ormental mentalimpairment impairmentthat thatsubstantially substantially limits limitsone oneor ormore moremajor majorlife lifeactivities activities •• Persons Personswith withhistory historyor orrecord recordof ofsuch suchimpairment impairment •• Persons Personsregarded regardedas ashaving havingsuch suchan animpairment impairment

 – – Handicapped individuals lslsmust Handicappedindividua individua individuals mustbe be“otherwise “otherwisequalified” qualified”toto perform perform(with (withreasonable reasonableaccommodation) accommodation)essential accommodation) essential functions functionsofofjob job(e.g., (e.g.,no noblind blindbus busdrivers) drivers)

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Pregnancy PregnancyDiscrimination DiscriminationAct Act(1978) (1978)  – – Prohibits Prohibitsemployers employersfrom fromdiscriminating discriminatingagainst againstpregnant pregnant employees employeesby byrequiring requiringpregnancy pregnancybe betreated treatedas asany anyother other medical medicaldisability disability  – – Does Doesnot notrequire requirereinstatement reinstatementofofreturning returningemployee employeetoto same samejob job  – – Does Doesnot notallow allowemployer employertotodetermine determinedates datesofofleave leave  – – Employer Employercannot cannotrefuse refusetotohire hireororpromote promote onbasis basisofof pr omoteon pregnancy pregnancy  – – Employer Employercannot cannotprovide providehealth healthplans plansthat thatdo donot notcover cover pregnancy pregnancy pregnancy

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• American AmericanWith WithDisabilities DisabilitiesAct Act(1990) (1990)  – – Prohibits Prohibitsall allemployers employerswith with15 15orormore moreemployees employeesfrom from discriminating discriminatingagainst againstdisabled disabledpersons persons  – – Courts Courtshave haveissued issuedambiguous ambiguous&&conflicting conflictingrulings rulingson on “medical “medicalconditions,” conditions,”“major “majorlife lifeactivities,” activities,”&&what whatconstitutes constitutes “disability.” “disability.”Decisions Decisionsmade madeon onaacase-by-case case-by-casebasis basis  – – Determination ““reasonable reasonable accommodation” accommodation ” Determinationofof“reasonable accommodation” •• Cost Costof ofaccommodation accommodation& &resources resourcesof ofemployer  employer  •• Nature  Natureof ofjob job& &workplace workplacesafety safety issues safetyissues •• Any Anyrelevant relevantcollective collectivebargaining bargainingprovisions provisions

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• California’s California’s A.B. A.B. 2222 2222  – – Significantly Significantlyless lessrestrictive restrictiverequirements requirementsfor for employees to show disability employees to show disability  – – No Nolimits limitstotodamages damages  – – Burden Burdenofofproof proofshifted shiftedfrom fromemployee employeetotoemployer  employer   – Relevance: California law is often harbinger of laws  – adopted Relevance: California law is often harbinger of laws adoptedelsewhere elsewhere

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws Americans AmericansWith WithDisabilities DisabilitiesAmendments AmendmentsAct Actof of 2008 2008(ADAAA) (ADAAA) •• Requires Requiresthat thatimpairments impairmentsbe beevaluated evaluatedwithout withoutconsidering considering mitigating mitigatingmeasures measures •• Disabilities Disabilitieswhich whichare areepisodic episodicor orininremission remissionare areprotected protected •• Specifies Specifiesmajor majorlife lifeactivities activitiesas asincluding including“eating, “eating,sleeping, sleeping,walking, walking, standing…” standing…”and andaahost hostof ofother otherdaily dailyactivities activities •• Lowers whethe r an indi vidual isis whet individual Lowersthe the standard standardon ondetermining determiningwhether whet whether her anindividual individual individual wheher ther “regarded” “regarded”as ashaving havingaadisability disability •• Directs DirectsEEOC EEOCto toreinterpret reinterpret“substantially “substantiallylimits” limits”to to“significantly “significantly restricts” restricts”

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Civil Civil Rights Rights Act Act (1991) (1991)  – – Extended ExtendedTitle TitleVII VIIcoverage coveragetotofederal federalemployees employees  – – Allows  Allows litigants litigantstotosue ssue ue for forcompensatory compensatory&&punitive punit puniti punitive puniive tive ve damages damages  – – Requires Requiresheavier heavier“burden “burdenofofproof” proof”on onpart partofof employers employersininrebutting rebuttingclaims claimsofof discrimination discrimination  – – Provided Provided“extraterritorial “extraterritorialenforcement” enforcement”ofoffederal federal labor laborlaws lawsininprotecting protectingU.S. U.S.employees employeeson on overseas overseasassignments assignments

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws •• Family Family& &Medical MedicalLeave LeaveAct Act(1992) (1992)  – – Requires Requiresemployers employerstotoprovide provideup uptoto12 12weeks weeksofofunpaid unpaid leave leavefor forbirth, birth,adoption, adoption,ororserious seriousillness illnessofofaachild, child,family family member, or employee during a 12 month period member, or employee during with awith 12 fifty month periodemployees  – – Act orga only organizations nizations organ  Act onlycovers covers organizations izations fiftyorormore more employees  – – Employee Employeemust musthave havebeen beenemployed employedminimum minimumofof25 25hours hours per perweek weekoror1,250 1,250hours hoursyearly yearly  – Employees in top 10% of employer’s salary ranges not  – covered Employees in top 10% of employer’s salary ranges not covered  – – Employer Employerrequired requiredtotocontinue continueemployee’s employee’sgroup grouphealth health coverage coverageduring duringleave leave  – – Employee same/equivalent Employeemust mustbe beallowed allowedtotoreturn returntotosame/equivalen same/equivalentttjob same/equivalen job Employee must be allowed to return to same/equivalen same/equivalentt job

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws Family Family& &Medical MedicalLeave LeaveAct Act(1992) (1992) •• State ggreatly reatly complicate Stateleave leavelaws lawsgreatly complicate employee employee leave leave under underthe the FMLA FMLA •• Individual Individual states statesoften often provide provide more more generous generous leave, leave, cover coveraa wider widerrange range of ofemployers employersand and include includemedical medicalconditions conditionswhich whichare arenot not covered covered under the FMLA under the FMLA •• State State laws lawsvary vary dramatically dramatically from from state state to to state state

 

Federal Federal Anti-Discrimination Anti-Discrimination Laws Laws Genetic GeneticInformation InformationNondiscrimination NondiscriminationAct Act(2008) (2008) • prohibits the use of genetic information information in •decisions  prohibitsrelated the useto ofhealth genetic informaand information tion decisions insurance related to health insurance and in employment employment ••Employers Employersneed need to to utilize utilize extreme extreme caution caution in in collecting collectinginformation informationabout aboutemployees employeeswhich whichcould could give giverise riseto toaaGINA GINAclaim. claim.

 

EEOC EEOC Enforcement Enforcement of of Federal Federal Law Law •• Burden Burden of ofproof proofinitially initially falls fallson on complainant o ncomplainant (employee) (employee)to todemonstrate demonstrate  – – Disparate  in Disparatetreatment  treatment  in deliberatediscrimination discriminationofof“protected “protected  indeliberate  in “ protected class” class”individual individualor  or   – – Disparate  as Disparate(adverse) (adverse)impact  impact  as resultofofapplication applicationofof  asresult  as standard standardorortreatment treatmentapplied appliedtotoall allindividuals individualsthat thatresults resultsinin differential differentialoutcomes outcomesororconsequences consequencesfor forprotected protectedgroups; groups; usually usuallydemonstrated demonstratedstatistically statisticallyusing using“four-fifths “four-fifthsrule” rule”  – – Four-fifths Four-fifthsrule rulestates statesthat thatififselection selectionrate ratefor forprotected protectedclass class isisnot prima not80% 80%ofofselection selectionrate ratefor formajority majorityclass classthen thenaaprima facie   case facie  case adverseimpact impactisisestablished. established.  caseofofadverse  case

 

EEOC EEOC Enforcement Enforcement of of Federal Federal Law Law •• Employers Employersrebutting rebuttingdiscrimination discriminationcase: case:  – – Must Mustdemonstrate demonstratejob-relatedness job-relatednessofofany anycriteria criteriautilized utilizedinin selection selectionprocess process  – – Can Canclaim claimbona bonafide fideoccupational occupationalqualification qualification(BFOQ) (BFOQ)that that requires requiresemployee employeetotopossess possessparticular particularpersonal personal characteristic characteristicororbe bemember memberofofparticular particulargroup group  – – Can Canuse useofofbona bonafide fideseniority senioritysystem systemnot notset setup uptoto intentionally intentionallydiscriminate discriminateagainst againstprotected protectedclass class  – – Can Canclaim claim“business “businessnecessity”; necessity”;that thatselection selectioncriteria criteriaare are essential essentialfor forsafe safe&&efficient efficientoperations operationsofoffirm firm

 

EEOC EEOC Enforcement Enforcement of of Federal Federal Law Law •• Voluntary Voluntary mediation mediation program program  – – Designed Designedtotobe befair, fair,impartial, impartial,&&unbiased unbiased  – – By Byrefusing refusing mediation, mediation, employers employersmay mayforce force employee to go to court employee to go to court  – – Litigation Litigation •• Is Istime-consuming time-consuming& &expensive expensivefor foremployer employer& & employee employee •• Is Isdisruptive disruptiveto toemployer’s employer’sworkplace workplace •• May Mayresult resultin inhard hardfeelings feelingstoward towardemployer  employer 

 

 Affirmative  Affirmative Action Action •• Affirmative AffirmativeAction ActionPlans Plans  – – Require Requireorganizations organizationstotodevelop, develop,implement, implement,&&maintain maintain program programtotomake makespecial t oinsure specialefforts effortstoto insureworkforce workforceisis representative representativeofofthe thesociety societywhere wherebusiness businessoperates operates  – – Re quired for Required  with Re and  with fororganizations organizationswith with100 100ororemployees employeesand  quired for Required  for  with  with $50,000 $50,000orormore moreininfederal federalcontracts contracts  – – Filed Filedwith withDepartment DepartmentofofLabor Labor&&monitored monitoredby byOffice Officeofof Federal FederalContract ContractCompliance Compliance  – – Considered Consideredtemporary temporarymeasures measurestotocorrect correct“underutilization” “underutilization” ofofcertain certainprotected protectedclasses classes

 

 Affirmative  Affirmative Action Action •• Four Fourseparate separatesections sections  – – Utilization Utilizationanalysis analysis •• Employer r ace,ethnicity, Employeridentifies identifiesemployees employeesby bygender, gender,race, race, ethnicity, religion, religion,physical physicalability, ability,& &any anyother otherprotected protectedclass class

 – – Availability analysis is  Availabilityanalys analysis

•• Examines Examinesavailability availabilityfor foremployment employmentof ofall allprotected protectedclasses classes in inimmediate immediaterecruiting recruitingvicinity vicinity

 – – Identification Identificationofofproblem problemareas areas

•• Employer Employernotes notesoverover-& &under-utilization under-utilizationof ofcertain certaingroups groups

 – – Narrative Narrativestatement statementofofcorrective correctiveaction action •• Detailed Detailedplans planswith withtimetables timetables

 

Sexual Sexual Harassment Harassment •• Supreme Supreme Court Court rulings rulings  – – Meritor MeritorSavings SavingsBank  Bank  • Sexual harassment is form of sexual discrimination • under Sexual harassment is form of sexual discrimination VII underTitle Title VII

 – – Oncale Oncalev.v.Sundowner SundownerOffshore OffshoreServices  Services  •• Same-sex Same-sexharassment harassmentisisactionable actionableunder underTitle TitleVII VII

•• Sexual Sexual harassment harassment is is “an “an individual’s individual’s clear clear rejection rejection of of offensive offensive & & inappropriate inappropriate (‘unwelcome’) (‘unwelcome’) advance” advance”

 

Forms Forms of of Sexual Sexual Harassment Harassment •• Quid Quid pro pro quo quo  – – Promise Promiseororuse useofofwork-related work-relatedbenefits benefitsororthreats threatstotobargain bargain with withororcoerce coerceindividual individualfor forsexual sexualfavors favors

•• Hostile Hostileworking workingenvironment environment  – – Presence Presence(perceived (perceivedororactual) actual)ofofoffensive offensiveororthreatening threatening environment environment

•• Harassment Harassment standards standardsused used by by court court

 – – ““Reasonable Reasonablewoman” woman”test test  – – Pattern equency &&pervasiveness) (fr (frequency requency pervasiveness)ororisolated isolated Patternofofbehavior behavior(frequency (f event/act event/actofofindividual individual  – – Response Responseofoforganization organizationtotocomplaint complaint

 

Guidelines Guidelines for for Managing Managing Sexual Sexual Harassment Harassment •• ••

Investigate Investigateall allallegations; allegations;ignorance ignorancenot notaadefense defense Conduct Conductthorough thorough& &prompt promptinvestigation investigation

•• Ensure Ensureinvestigator investigatorisisunbiased unbiased& &objective objective •• Ensure Ensureno noretaliation retaliationtakes takesplace place •• Treat Treataccused accusedemployee employeefairly fairly •• Have Haveboth bothparties partiessign signwritten writtenstatements statementsto toprevent prevent“fact” “fact” from changing from prompt changing •• Take Take promptaction action& &equate equateconsequences consequenceswith withbehavior  behavior  •• Have Haveclear, clear,defined definedprocess processfor forinvestigation, investigation,apply apply consistently, consistently,document documenteverything everything

 

Sexual Sexual Harassment Harassment •• Complications Complications abroad abroad  – – Many Manycultures culturesdo donot notacknowledge acknowledgesexual sexual harassment as workplace or societal problem, harassment as dilemmas workplace creating creatingethical ethical dilemmas or societal problem,  – – Courts Courtsplace placeresponsibility responsibilityon oncomplainants complainantstoto inform informharassers harassersthat thatadvances advancesor orbehaviors behaviorsare are “unwelcome” “unwelcome”  – – Burden Burdenrests restswith withemployer employerofofestablishing, establishing, communicating, communicating,&&implementing implementingclear clearpolicy policy

 

Trends Trends in in Employment Employment Litigation Litigation •• Blatant Blatantto tosubtle subtlediscrimination discrimination •• Use Use of ofelectronically electronically produced produced and and stored stored evidence evidence •• Increasing rretaliation etaliation Increasingcomplaints complaintsof ofemployer employerretaliation •• More Moreexpeditious expeditiousemployer employersettlements settlements •• Use Useof ofemployment employmentpractice practiceliability liabilityinsurance insurance Use of employment practice liability insurance (EPLI) (EPLI) •• Language Language rules rulesin in the the workplace workplace

 

Reading Reading7.1 7.1

In In Defense Defense of of Preference Preference •• Gap Gapbetween betweeneducational educationalperformance performanceof ofblacks blacks & & whites whiteshas haspersisted persisted & & deepened deepened •• Gulf Gulfexists existsbetween betweeneducational educational& &occupational occupational status statusof ofblacks blacks& & whites, whites, encompassing encompassing  – – Wealth Wealth  – – Residential Residentialsegregation segregation  – – Social Socialrelationships relationships

•• Banning Banning preference preference would would be be bad bad for forcountry country  – – Preference Preferenceisisno nofinal finalanswer  answer   –  – Elimination Eliminationofofpreference preferenceisisno nofinal finalanswer  answer 

 

Reading Reading7.1 7.1

In In Defense Defense of of Preference Preference •• We Weare are“two “twonations” nations”  – – One Onenation nationcannot cannotbe beexcluded excludedfrom frominstitutions institutionsthat thatconfer confer access accesstotopositions positionsofofgreatest greatestprestige prestige&&power  power   – – Both Bothnations nationsmust mustparticipate participateininsociety societytotosome somedegree degree

•• Many Many difficult difficult issues issuesremain remain  – – What Whatkind? kind?  – – To Towhat whatextent? extent?  – – How Howlong? long?  – – Imposed Imposedby bywhom? whom?  – – By Bywhat whatdecision-making decision-makingprocess? process?

 

Reading Reading 7.2 7.2

The The Management Management of of Organizational Organizational Justice Justice Organizational Organizationaljustice justicerefers refersto tothe theextent extentto towhich which employees employeesfeel feelthat thatthey theyare arebeing beingtreated treatedfairly fairlyin in organizations organizations Correlates Correlateswith withgreater greatertrust trustand andcommitment, commitment,improved improvedjob job  performance,  performance,better bettercitizenship citizenshipbehavior, behavior,improved improved customer customerservice serviceand andsatisfaction satisfactionand andreduced reducedconflict conflict Organizational Organizationaljustice justiceisisaaprocess processwhich whichneeds needsto tobe beactively actively managed. managed.

 

Reading Reading7.2 7.2

The The Management Management of of Organizational Organizational Justice Justice

Components Componentsof ofjustice justice • Distributive justice – the appropriateness of • outcomes Distributive Distributive justice justice –– the the appropriateness appropriateness of of outcomes •• Procedural Procedural justice justice –– the the appropriateness appropriatenessof of allocation allocationprocesses processes •• Interactional Interactional justice justice –– the the appropriateness appropriatenessof ofhow how employees employeesare are treated treated by by superiors superiors

 

Reading Reading7.2 7.2

The The

Management Management Managementof of Organizational Organizational Justice Justice

 

Reading Reading7.2 7.2

The The Management Management of of Organizational Organizational Justice Justice

Perceptions Perceptionsof ofjustice justiceare areinfluenced influencedby by  – – selection selectionprocedures procedures  – – compensation compensationand andreward rewardsystems systems  – – conflict t echniques conflictresolution resolutiontechniques techniques  – – downsizing downsizingactivities activities  – – performance performancemanagement managementsystems systems