Chapter 3

The Legal Environment: Equal Employment Opportunity and Safety

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 Learning Objectives 1 of 2
LO 3-1 Identify the three branches of government and the
role each plays influencing the legal environment of
human resource management.
LO 3-2 List the major federal laws that require equal
employment opportunity and the protections
provided by each of these laws.
LO 3-3 Discuss the roles, responsibilities, and
requirements of the federal agencies responsible
for enforcing equal employment opportunity laws.
LO 3-4 Identify the three theories of discrimination under
Title VII of the Civil Rights Act and apply these
theories to different discrimination situations.

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 Learning Objectives 2 of 2
LO 3-5 Identify behavior that constitutes sexual
harassment, and list things that an organization can
do to eliminate or minimize it.
LO 3-6 Discuss the legal issues involved with preferential
treatment programs.
LO 3-7 Identify the major provisions of the Occupational
Safety and Health Act (1970) and the rights of
employees that are guaranteed by this act.

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 The Legal System in the United States
Three branches
• Legislative Branch
• House of Representatives
• Senate
• Executive Branch
• President
• Regulatory Agencies
• Judicial Branch
• U.S. District Courts
• U.S. Courts of Appeals
• Supreme Court

LO 3-1

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 Equal Employment Opportunity 1 of 7
Equal Employment Opportunity
• Enforced through constitutional amendments,
legislation, executive orders, and court decisions

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 Equal Employment Opportunity 2 of 7
Constitutional Amendments
Thirteenth Amendment
• Abolished slavery
Fourteenth Amendment
• Provides equal protection for all citizens and requires
due process in state action

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 Equal Employment Opportunity 3 of 7
Congressional Legislation
• Reconstruction Civil Rights Acts of 1866 and 1871
• Grants all citizens the right to make, perform, modify, and
terminate contracts and enjoy all benefits, terms, and
conditions of the contractual relationship
• Equal Pay Act of 1963
• Requires that men and women performing equal jobs
receive equal pay

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 Equal Employment Opportunity 4 of 7
Congressional Legislation continued
• Title VII of the Civil Rights Act of 1964
• Forbids discrimination based on race, color, religion, sex,
or national origin
• Age Discrimination in Employment Act of 1967
• Prohibits discrimination in employment against
individuals 40 years of age and older

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 Equal Employment Opportunity 5 of 7
Congressional Legislation continued
• Rehabilitation Act of 1973
• Requires affirmative action in the employment of
individuals with disabilities
• Vietnam Era Veteran’s Readjustment Assistance
Act of 1974
• Requires federal contractors and subcontractors to take
affirmative action toward employing Vietnam veterans

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 Figure 3.1 Age Discrimination Complaints, 1991–2014

©McGraw-Hill Education. SOURCE: Equal Employment Opportunity Commission, “Age

 Equal Employment Opportunity 6 of 7
Congressional Legislation continued
• Pregnancy Discrimination Act
• Prohibits discrimination on the basis of pregnancy,
childbirth, or related medical conditions
• Civil Rights Act of 1991
• Prohibits discrimination (same as Title VII)
• Americans with Disabilities Act of 1990
• Prohibits discrimination against individuals with
disabilities

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 Table 3.2 Maximum Punitive Damages
Allowed under the Civil Rights Act of 1991

EMPLOYER SIZE DAMAGE LIMIT

14 to 100 employees $  50,000

101 to 200 employees $  50,000
201 to 500 employees $  200,000
More than 500 employees $ 300,000

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 Equal Employment Opportunity 7 of 7
Executive Orders
Executive Order 11246
• Prohibits government contractors and subcontractors from
discrimination based on race, color, religion, sex, and
national origin.
Executive Order 11478
• Requires the federal government to base all its employment
policies on merit and fitness, and specifies that race, color,
sex, religion, and national origin should not be considered.

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 Enforcement of Equal Employment
Opportunity 1 of 3
Equal Employment Opportunity Commission
(EEOC)
• Investigation and Resolution
• Lilly Ledbetter Fair Pay Act
• Information Gathering
• Issuance of Guidelines
• Uniform Guidelines on Employee Selection Procedures

LO 3-3

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 Enforcement of Equal Employment
Opportunity 2 of 3
Lilly Ledbetter Fair Pay Act
Congress passed the act specifying that an “illegal act”
occurs when
(1) a discriminatory compensation decision is adopted
(2) an employee becomes subject to the decision or
(3) an employee is affected by it application, including each time
compensation is paid

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 Enforcement of Equal Employment
Opportunity 3 of 3
Office of Federal Contract Compliance Programs
(OFCCP)
• Utilization analysis
• Goals and timetables
• Action steps

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 Types of Discrimination 1 of 6

Disparate Treatment
Disparate Impact
Reasonable Accommodation

LO 3-4

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 Table 3.3 Comparison of Discrimination Theories 1 of 2

DISPARATE TREATMENT DISPARATE REASONABLE

IMPACT ACCOMMODATION
Show Intent? Yes NO Yes
Show Intent? Individual is a member Statistical disparity Individual has a
of a protected group, in the effects of a belief or disability,
was qualified for the job, facially neutral provided the
and was turned down employment employer with notice
for the job, and the job practice (request to
remained open accommodate), and
was adversely
affected by a failure
to be accommodated
Employer’s Produce a legitimate, Prove that the Job-relatedness and
defense nondiscriminatory employment business necessity,
reason for the practice bears a undue hardship, or
employment decision or manifest direct threat to health
show bona fide relationship with or safety
occupational job performance
qualification (BFOQ)

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 Table 3.3 Comparison of Discrimination Theories 2 of 2

DISPARATE TREATMENT DISPARATE IMPACT REASONABLE

ACCOMMODATION

Plaintiff’s Reason offered was Alternative

rebuttal merely a “pretext” for procedures exist
discrimination that meet the
employer’s goal
without having
disparate impact
Monetary Compensatory and Equitable relief (for Compensatory and
damages punitive damages example: back pay) punitive damages
(if discrimination
was intentional or
employer failed to
show good-faith
efforts to
accommodate)

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 Types of Discrimination 2 of 6
Disparate treatment
• When individuals are treated differently because of
their race, sex, or the like
• The Plaintiff’s Burden
• Prima facie
• The Defendant’s Rebuttal
• Bona fide occupational qualification
• The Plaintiff’s Rebuttal
• Mixed Motive Cases

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 Types of Discrimination 3 of 6
Disparate Impact
• Occurs when a neutral employment practice
disproportionately excludes a protected group from
employment opportunities
• The plaintiff’s burden
• Four-fifths rule
• Standard deviation rule
• Wards Cove Packing Co. v. Antonio

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 Types of Discrimination 4 of 6
Disparate Impact continued
• Defendant’s Rebuttal
• Must show that the employment practice is a “business
necessity.”
• Plaintiff’s Rebuttal
• Argue that other employment practices could sufficiently
meet the employer’s goal without adverse impact

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 Types of Discrimination 5 of 6
Pattern and Practice
Plaintiffs attempt to show three things in class action
pattern and practice lawsuits
• Statistical disparities between composition of some group
within the company compared to some other relevant group
• Individual acts of intentional discrimination that suggest
statistical disparity is a function of the larger culture
• Promotion and/or pay procedures leave too much discretion
to managers, providing the avenue through which
unconscious biases can play a part

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 Types of Discrimination 6 of 6
Reasonable Accommodation
Religion and accommodation
• An employee must demonstrate that he or she has a
legitimate religious belief and provided the employer with
notice of the need to accommodate the religious practice,
and that adverse consequences occurred due to the
employer’s failure to accommodate.
Disability and accommodation
• The plaintiff must show that she or he is a qualified applicant
with a disability and that adverse action was taken by a
covered entity

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 Retaliation for Participation and Opposition
Title VII
Employers cannot retaliate against employees for either
"opposing" a perceived illegal employment practice or
"participating in a proceeding” related to an alleged
illegal employment practice
Opposition
Expressing to someone through proper channels that
you believe that an illegal employment act has taken
place or is taking place.
Participation
Testifying in an investigation, hearing, or court
proceeding regarding an illegal employment act

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 Current Issues Regarding Diversity and
Equal Employment Opportunity 1 of 3
Sexual harassment
• Refers to unwelcome sexual advances
• Charges have been decreasing since 2010
• Hostile working environment
• Filings by men have increased

LO 3-5

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 Figure 3.3 Sexual Harassment Charges,
2010–2016

©McGraw-Hill Education. SOURCE: Equal Employment Opportunity Commission, “Charges

 Table 3.4 EEOC Definition of Sexual Harassment

Unwelcome sexual advances, requests for sexual

favors, and other verbal or physical contact of a sexual
nature constitute sexual harassment when

1. Submission to such conduct is made either explicitly or implicitly a

term or condition of an individual’s employment,

2. Submission to or rejection of such conduct by an individual is used

as the basis for employment decisions affecting such individual, or

3. Such conduct has the purpose or effect of unreasonably interfering

with an individual’s work performance or creating an intimidating,
hostile, or offensive working environment.

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 Current Issues Regarding Diversity and
Equal Employment Opportunity 2 of 3
Affirmative Action and Reverse Discrimination
• Imposed quota programs
• Ricci v. DeStefano
Outcomes of the Americans with Disabilities Act
• Increased litigation
• Many cases being filed are not based on the rights
that Congress intended to protect
• Does not appear to have had its anticipated impact
on the employment of Americans with disabilities

LO 3-6
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 Current Issues Regarding Diversity and
Equal Employment Opportunity 3 of 3
LGBT Issues
• Most businesses are more inclusive.
• The state of employment law has not caught up.
• The Equality Act of 2017
• Unlikely to pass
• The courts have not made a definitive decision

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 Employee Safety 1 of 6
The Occupational Safety and Health Act (OSHA)
• Authorizes federal government to establish and
enforce occupational safety and health standards for
all places of employment engaging in interstate
commerce.
• Employee rights under OSHA
• General Duty Clause

LO 3-7

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 Table 3.6 Rights Granted to Workers Under OSHA

Employees have the right to

1. Request an inspection.
2. Have a representative present at an inspection.
3. Have dangerous substances identified.
4. Be promptly informed about exposure to
hazards and be given access to accurate records
regarding exposures.
5. Have employer violations posted at the work
site.

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 Employee Safety 2 of 6
The Occupational Safety and Health Act (OSHA) continued
OSHA inspections
1. The compliance officer reviews the employer’s records of deaths,
injuries, and illnesses.
2. The officer, typically accompanied by a representative of the
employer (and perhaps by a representative of the employees),
conducts a “walkaround” tour of the employer’s premises.
3. Employee interviews may take place during the tour.
4. In a closing conference, the compliance officer discusses the findings
with the employer, noting any violations.

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 Employee Safety 3 of 6
The Occupational Safety and Health Act (OSHA) continued
Citations and penalties
• The compliance officer can issue a citation to the employer that
specifies the exact practice or situation that violates the act.
• The employer must post the citation.
• Fines may be assessed against the employer.
• Criminal penalties may also be assessed.

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 Employee Safety 4 of 6
The Occupational Safety and Health Act (OSHA) continued
The Effect of OSHA
• Raised level of awareness
• Does not directly regulate employee behavior

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 Employee Safety 5 of 6
Safety Awareness Programs
• Identifying and Communicating Job Hazards
• The job hazard analysis technique
• The technic of operations review (TOR)
• Reinforcing Safe Practices
• Safety incentive programs
• Focus on specific injuries or disabilities

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 Table 3.8 A 10-Step Program for Reducing Eye-
Related Injuries
1. Conduct an eye hazard job analysis.
2. Test all employees’ vision to establish a baseline.
3. Select protective eyewear designed for specific operations.
4. Establish a 100% behavioral compliance program for eyewear.
5. Ensure that eyewear is properly fitted.
6. Train employees in emergency procedures.
7. Conduct ongoing education programs regarding eye care.
8. Continually review accident prevention strategies.
9. Provide management support.
10. Establish written policies detailing sanctions and rewards for
specific results.

©McGraw-Hill Education. SOURCE: From T. W. Turrif, “NSPB Suggests 10-Step Program to

 Employee Safety 6 of 6
Promoting Safety Internationally
Cultural differences

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