CHAPTER 3 Workplace Diversity, Equal Employment Opportunity, and Affirmative Action

Chapter 3:
Workplace Diversity, Equal

Employment Opportunity, and
Affirmative Action
SEGi University & Colleges. All rights reserved.

Learning Objectives
• Discuss lesbian, gay, bisexual, and transgender employees as a
protected class.
• Describe diversity and diversity management and explain the
various components of the diverse workforce.
• Identify the major laws affecting equal employment
opportunity.
• Describe the recent trend against employee retaliation.
• Identify some of the major Supreme Court decisions that have
had an impact on equal employment opportunity and
affirmative action.
Copyright © [2014] Pearson Education

3-2
Learning Objectives (Cont.)
• Describe the Equal Employment Opportunity Commission
and explain the purpose of the Uniform Guidelines on
Employee Selection Procedures.
• Describe disparate treatment and adverse impact and explain
the Uniform Guidelines related to sexual harassment,
national origin, religion, and caregiver (family responsibility)
discrimination.
• Explain affirmative action as required by presidential
Executive Orders 11246 and 11375 and describe affirmative
action programs.
• Describe sexual harassment in the global environment.
3-3
HRM in Action: Lesbian, Gay, Bisexual, and
Transgender Employees as a Protected Class?
•Increased focus in political and workforce arena

•Public tends to support equal rights for gay people —
with exception of right to marry
•Many companies have policies in support of LGBT
employees
Copyright © [2014] Pearson Education 3-4

3-4
Diversity
• Any perceived difference among people
• More than equal employment and affirmative
action
• Creates workforces that mirror populations and
customers
Copyright © [2014] Pearson Education,

3-5
Inc. Publishing as Prentice Hall
Diversity Management
Ensuring that factors are in place to:

• Provide for and encourage the continued
development of a diverse workforce
• Meld actual and perceived differences
among workers

3-6
Components of the Diverse
Workforce
• Single parents and • People with disabilities
working mothers • Immigrants
• Women in business • Foreign workers
• Mothers returning to • Young persons, some
the workforce with limited education
• Dual-career families or skills
• Workers of color • Baby Boomers, Gen X,
• Older workers Gen Y, and Gen Z

3-7
Single Parents and Working
Mothers
• Number is growing
• 50% of marriages end in divorce
• Widows and widowers who have children
• 72% of mothers with children under 18 are in
workforce
• Being a mother does not significantly change
young women's career ambitions

3-8
Women in Business
• Prominent rise in number of women in labor force
• Entering labor force in high-paying, professional
jobs and women dominating health-care sector
• Women make up majority of American workforce
• Many opt out of corporate life

3-9
Mothers Returning to the
Workforce
• More new mothers are leaving the labor force only to
return later
• Some firms are trying to recruit them to return to
labor force
• Some employers have programs that help their
employees leave and later return

3-10
Dual-Career Families
• Both husband and wife have jobs and family
responsibilities
• Children often have both parents working outside
home
• Often turn down relocations
• Want more workplace flexibility

3-11
Workers of Color
• By 2016, 43% of new job applicants will be people of
color
• Often experience stereotyping
• Often encounter misunderstandings and expectations
• Bicultural stress
• Culture of origin can lead to misunderstandings in
workplace

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Older Workers
• Many Boomers deferred retirement
• United States faces rapid departure of Boomers
• Many companies try to keep the over-55 worker

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Persons with Disabilities
• Disabled workers do as well as unimpaired
workers in terms of:
• Productivity
• Attendance
• Average tenure
• Costs for accommodations differ very little
from those for general population

3-14
Immigrants
• Large numbers of immigrants have settled in United
States
• Require time to adapt
• Managers must work to understand different
cultures and languages

3-15
Foreign Workers
• The H-1B employment visa brings in upwards of
115,000 skilled foreign workers annually
• 85,000 are distributed to employers through a lottery
system
• Exact number of H-1B visa holders is difficult to
determine

3-16
Young Persons, Some with
Limited Education or Skills
• Lower labor force participation rate for young
people
• Recent recession was especially harsh for 16-to-19-
year-olds
• Often have poor work habits
• Can do many jobs well
• Jobs can be de-skilled

3-17
Baby Boomers
• Born just after World War II through the mid-1960s
• Employers seek out boomers because they bring a
wealth of skills and experience to the workplace
• Recognized as having a great work ethic and a solid
attendance record

3-18
Generation X
• 41 million American workers born between the
mid-1960s and late 1970s
• Possess lots of energy and promise
• Job instability and the breakdown of the traditional
employer-employee relationship
• Think more as free agents and expect to build
career security, not job security

3-19
Generation Y
• People born between the late 1970s and late
1990s
• Promises to be the richest, smartest, and savviest
ever
• Strong sense of morality and civic-mindedness
• Childhoods have been short-lived

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Generation Z or Digital Natives
• Born between 1995 and 2009

• More worldly, high-tech and confident
• Tend to have short attention spans
• Desire speed over accuracy
• Enjoy media that provides live social
interaction

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Multigenerational Diversity
• Four generations are now in the workforce
• Each has different defining characteristics and
nicknames
• Managers need to be aware of and skilled in
dealing with the different generations

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Equal Employment Opportunity:
An Overview
• EEO modified since passage of:
• Equal Pay Act of 1963
• Civil Rights Act of 1964
• Age Discrimination in Employment Act of 1967
• Other congressional legislation
• Major Supreme Court decisions
• Executive orders signed into law

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Laws Affecting Equal
Employment Opportunity
(U.S.)

3-24
Civil Rights Act of 1866
• Oldest federal legislation affecting staffing
• Based on Thirteenth Amendment
• No statute of limitations
• Employment is a contractual arrangement
• Extended to cover private parties in 1968

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Equal Pay Act of 1963,
Amended in 1972
• Cannot pay employee of one gender less money
than employee of opposite gender if both
employees do work that is substantially the same
• Work must:
• Require equal skill
• Require equal effort
• Involve equal responsibility
• Be performed under similar working conditions

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Lilly Ledbetter Fair Pay Act of
2009
• Claimed pay discrimination
• Court said that discrimination charges
must be filed within 180 days
• Creates a rolling or open time frame for
filing wage discrimination claims

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Comparable Worth
• Requires determination of the values of dissimilar
jobs by using job evaluation
• Pay rates determined by jobs’ evaluated worth
• Supreme Court has ruled the Equal Pay Act does not
require comparable worth

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Title VII of Civil Rights Act of 1964,
Amended in 1972
• Greatest impact on HR management
• Illegal for employer to discriminate
• Applies to firms with 15 or more employees
• Created the Equal Employment Opportunity
Commission (EEOC) to enforce Title VII

3-29
Pregnancy Discrimination Act of
1978
• Amendment to Title VII of Civil Rights Act
• Pregnancy, childbirth, or related medical condition
• Prohibits questions about family plans, birth control
techniques, etc.
• Benefits area also covered

3-30
Civil Rights Act of 1991
• Provided appropriate remedies for intentional discrimination
and unlawful harassment
• Codified “business necessity” and “job-relatedness”
• Confirmed authority and guidelines for finding disparate
impacts under Title VII
• Disparate impact: When certain actions in employment
process work to disadvantage of members of protected
groups. Discussed under topic of adverse impact

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Age Discrimination in Employment Act of
1967, Amended in 1986
• Illegal to discriminate against anyone 40 years or
older (previously 40-65 & 40-70)
• Administered by EEOC
• Pertains to employers who have 20 or more
employees
• Provides for trial by jury
• Possible criminal penalty
• Class action suits are possible

3-32
Age Can Be Bona Fide
Occupational Qualification
• Federal Aviation Administration can force
commercial pilots to retire at age 65
• Greyhound did not violate ADEA when it refused to
hire persons 35 years or older as intercity bus
drivers
• Likelihood of risk or harm to passengers was
involved with both cases

3-33
Rehabilitation Act of 1973
• Prohibits discrimination against disabled workers
working for government contractors and organizations
• Contracts exceeding $2,500: Employer required to post
affirmative action notices
• Contracts exceeding $50,000, or if contractor has 50 or
more employees: Employer must prepare written
affirmative action plan
• Administered by Office of Federal Contract Compliance
Programs (OFCCP)

3-34
Americans with Disabilities Act
of 1990 (ADA)
• Prohibits discrimination against qualified individuals
with disabilities
• Disabled individual: Person who has, or is regarded
as having, a physical or mental impairment that
substantially limits one or more major life activities,
and has a record of such an impairment

3-35
Americans with Disabilities Act:
Amendments Act of 2008
• Expanded the definition of “disability”
• More applicants and employees eligible for
reasonable accommodations
• Broadened ADA's definition of disability by expanding
term “major life activities”
• Did away with “substantially limited” requirement

3-36
Immigration Reform and Control Act
(IRCA) of 1986
• Granted amnesty to approximately 1.7 million long-
term unauthorized workers
• Established criminal and civil sanctions against
employers who knowingly hire unauthorized aliens
• Reduced threshold coverage to 4 employees
• Toughened criminal sanctions for employers who
hire illegal aliens

3-37
Illegal Immigration Reform and
Immigrant Responsibility Act of 1996
• Passed partly because at least one of the terrorists who
blew up World Trade Center had legally entered on
student visa
• Places severe limitations on persons who:
• Come to U.S. and remain in country longer than
permitted by their visas
• Violate their nonimmigrant status
• Penalties range from 3- to 10-year ban from entering
the U.S.

3-38
Uniformed Services Employment and
Reemployment Rights Act (USERRA) of 1994
• Protections for Reservists and National Guard called to
active duty
• Workers entitled to return to civilian employment
after military service
• Intended to eliminate or minimize employment
disadvantages to civilian careers
• Escalator principle: Can return to job he/she would
have attained

3-39
Vietnam Era Veterans’ Readjustment
Assistance Act of 1974, as Amended
• Originally referred to Vietnam era veterans
• Served in a campaign or expedition for which a
medal was issued
• Includes Desert Storm and the current
engagements in the Middle East
• Prohibits federal contractors from
discriminating against specified categories of
veterans

3-40
Trends & Innovations: Employee
Retaliation
• Significant increase in number of employee retaliation
charges
• Burlington Northern & Santa Fe Railway Co. v White—
Lowered standard of proof
• Thompson v North American Stainless L.P.U.S.—
Expanded scope of who might bring a retaliation
charge

3-41
State and Local Laws
• State and local laws affect EEO.

• When EEOC regulations conflict with state or
local civil rights regulations, legislation more
favorable to women and minorities applies.

3-42
Supreme Court Decisions Affecting EEO
• Court interpretations continuously change,

even though the law may not have been
amended
• Significant U.S. Supreme Court decisions
affecting EEO

3-43
Griggs v Duke Power Company
• Continues to be the benchmark case and
example of disparate impact in employment law
• Prima facie evidence
• Questions that should be avoided if not job-
related include credit record, conviction record,
garnishment record, and education

3-44
Albemarle Paper Company v
Moody
• Reaffirmed idea that any test used in selection
process or in promotion decisions must be
validated if it has adverse impact on women and
minorities
• Employer has burden of proof for showing that test
is valid

3-45
Phillips v Martin Marietta
Corporation
• Firm cannot impose standards for employment only
on women
• Examples of questions that should be avoided are:
• “Do you wish to be addressed as Ms., Miss, or Mrs.?
• “Are you married?”
• “Do you have children?”
• “Do you plan on having any more children?”
• “Where does your husband work?”

3-46
Dothard v Rawlingson
• Company believed that minimum height and weight
requirements for position of correctional counselor
were job-related
• Court stated that this argument does not rebut
prima facie evidence showing these requirements
have a discriminatory impact on women

3-47
American Tobacco Company v
Patterson
• Supreme Court allowed seniority and promotion
systems established since Title VII to stand,
although they unintentionally hurt minority
workers
• Seniority system would fall under the Griggs
rationale if it were not for Section 703(h) of the
Civil Rights Act

3-48
O’Connor v Consolidated Coin
Caterers Corp.
• Ruled that an employee does not have to show that
he or she was replaced by someone younger than 40
to bring suit under the ADEA
• Discrimination is illegal even when all the employees
are members of the protected age group

3-49
Supreme Court Decisions Affecting
Affirmative Action

3-50
University of California Regents v
Bakke
• University of California had reserved 16 places
in each beginning medical school class for
minorities
• Bakke, a white man, was denied admission even
though he scored higher
• University admitted Bakke after court ruled in
his favor
• Court reaffirmed that race may be taken into
account in admission decisions
3-51
Grutter v Bollinger
• Appeared to support the Bakke decision
• Schools may favor black, Hispanic, and other
minority students in admissions
• Must take the time to assess each applicant’s
background and potential

3-52
Gratz v Bollinger
• Cannot use point systems that blindly give extra
credit to minority applicants
• Giving an automatic 20 points to minority
applicants, was not the proper way to achieve racial
diversity

3-53
Ricci v DeStefano
• Held that the City discriminated against white and
Hispanic firefighters
• City had to show a “strong basis in evidence” that
the tests were not job-related or that another, less
discriminatory test existed

3-54
Equal Employment Opportunity
Commission
• Title VII of the Civil Rights Act, as amended,

created the Equal Employment Opportunity
Commission
• Filing a discrimination charge initiates EEOC action

3-55
Steps in Handling a Discrimination Case

3-56
Factors that Determine whether EEOC
will Pursue Litigation
• Number of people affected by alleged
practice
• Amount of money involved in charge
• Other charges against employer
• Type of charge

3-57
Uniform Guidelines on Employee
Selection Procedures
• Single set of principles
• Designed to assist employers, labor organizations,
employment agencies, and licensing and certification
boards
• Comply with federal prohibitions against
employment practices that discriminate
• Based on race, color, religion, gender, and national
origin

3-58
Concept of Disparate Treatment
• Employer treats some people less favorably than
others because of: race, religion, sex, national
origin, and age.
• Most easily understood form of discrimination
• McDonald v. Santa Fe Trail Transportation Company
(1977) offers an example of disparate treatment

3-59
Concept of Adverse Impact
• Defined in terms of selection rates
• Established by Uniform Guidelines
• Occurs if women and minorities are not hired at
rate of at least 80% of best-achieving group
• Also called the four-fifths rule

3-60
Adverse Impact Example
• During 2013, 300 blacks and 300 whites were hired
• 1,500 qualified black applicants
• 1,000 qualified white applicants
• Using the adverse impact formula, you have:
300/1500 = 0.2
300/1000 = 0.3 = 66.67%
Thus, adverse impact exists.

3-61
Additional Guidelines
• Guidelines on Sexual Harassment
• Guidelines on Discrimination Because of National
Origin
• Guidelines on Discrimination Because of Religion
• Guidelines on Caregiver (Family Responsibility)
Discrimination

3-62
Guidelines on Sexual Harassment
• Title VII generally prohibits gender discrimination in

employment
• EEOC issued interpretative guidelines
• Two types of sexual harassment:
• Hostile work environment
• A quid pro quo situation

3-63
Sexual Harassment (Cont.)
• Employers are liable for acts of supervisors,
regardless of whether employer is aware of the
sexual harassment
• Employer is responsible for acts of co-workers if
employer knew, or should have known, about the
acts
• Employer may be liable for acts committed by
nonemployees in workplace
• Employer may not be liable if it takes immediate and
appropriate action

3-64
Guidelines on Discrimination
Because of National Origin
Discrimination on basis of national origin is denial of
equal employment opportunity due to:
• Individual’s ancestors or place of birth
• Individual’s physical, cultural, or linguistic characteristics

3-65
English-Only Rule
• Courts generally ruled in employer’s favor if rule
would:
• Promote safety and product quality
• Stop harassment
• Must be justified by a compelling business
necessity

3-66
Guidelines on Discrimination
Because of Religion
• Obligation to accommodate religious
practices unless employer can
demonstrate a resulting hardship

3-67
Methods for Accommodating
Religious Practices
• Voluntary substitutes
• Flexible scheduling
• Lateral transfers
• Change in job assignments
• Unions can permit donations

3-68
Guidelines on Caregiver (Family
Responsibility) Discrimination
• Discrimination based on employee obligations to care
for family members
• EEOC’s guideline: “Unlawful Disparate Treatment of
Workers with Caregiving Responsibilities”
• Offers “best practices” measures

3-69
Avoiding EEO Litigation
• Suits are still being brought and won because of
mistakes in adherence to standards
• Need a strong EEO policy against discrimination
• May still be breakdowns
• Provided an opportunity to train employers how to
handle a problem the next time

3-70
Executive Order
• Directive issued by the President of the U.S.
• Has the force and effect of a law enacted by
Congress
• Applies to federal agencies and federal
contractors

3-71
Affirmative Action
• President Harry S. Truman officially ended racial

segregation in all branches of the military by issuing
Executive Order 9981 in 1948
• Officially, affirmative action began in 1965 when
President Lyndon B. Johnson signed EO 11246
• Prohibits discrimination in employment because of
race, creed, color, or national origin

3-72
Executive Order 11246
• Providing equal opportunity in federal employment
• Prohibits discrimination in employment because of
race, creed, color, or national origin
• Positive, continuing program in each executive
department and agency

3-73
Executive Order 11375
In 1968, changed word “creed” to
“religion” and added sex discrimination

3-74
Affirmative Action Programs
Approach developed by organizations with

government contracts to demonstrate that
workers are employed in proportion to their
representation in firm's relevant labor market

3-75
Degree of Control OFCCP
Will Impose
• Office of Federal Contract Compliance Programs (OFCCP)
• Contractors with $10,000–$50,000 contracts are governed
by equal opportunity clause.
• If contractor (1) has 50 or more employees, or (2) has
contracts of $50,000 or more, it must develop written
affirmative action program and file annual EEO-1 report.
• When contracts exceed $1 million:
• All previously stated requirements must be met.
• OFCCP is authorized to conduct pre-award compliance reviews.

3-76
What Is Included in an AAP?
• Affirmative action program (AAP)
• Develop a policy statement
• Analyze deficiencies in utilization of minority groups
and women
• Conduct a utilization analysis
• Analyze of all major job groups
• Underutilization: Having fewer minorities or women
in particular job group than would reasonably be
expected by their availability

3-77
Underutilization Example
• If utilization analysis shows availability of blacks for
certain job group is 30%, organization should have at
least 30% black employment in that group
• If actual employment is less than 30%,
underutilization exists, and firm should set a goal of
30% black employment for that job group

3-78
Primary Focus
• Goals and timetables
• Annual and ultimate
• Annual goal: Move toward elimination of
underutilization
• Ultimate goal: Correct all underutilization
• Should not establish inflexible quotas that must be
met

3-79
HR Laws and Executive Orders Affecting
Small Businesses
• Small business managers usually do not have HR
resources available that large organizations do
• All but very small businesses fall under coverage of
federal and local laws and presidential executive
orders

3-80
A Global Prospectus: Global
Sexual Harassment
• Behaviors that violate U.S. cultural norms may not
be perceived as a problem in another culture
• Level of enforcement varies considerably from
country to country

3-81
Tutorial
Global sexual harassment: “Behaviours that violate
U.S. cultural norms may not be perceived as a
problem in another culture”
1.Discuss how an employee can differentiate between what is

‘sexual harassment’ and what is ‘the norm’.
2.How should employees react to ‘norms’ that they are not
used to/ find unacceptable.
3.To what extent should organisations allow ‘the norm’ at the
workplace?

3-82
Tutorial
Select one (1) component of the diverse workforce
and explain how compensation and benefit can be
customized to fit them appropriately:
3-83

CHAPTER 3 Workplace Diversity, Equal Employment Opportunity, and Affirmative Action

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CHAPTER 3 Workplace Diversity, Equal Employment Opportunity, and Affirmative Action

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Chapter 3:

Workplace Diversity, Equal

SEGi University & Colleges. All rights reserved.

Copyright © [2014] Pearson Education

•Increased focus in political and workforce arena

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Copyright © [2014] Pearson Education,

Ensuring that factors are in place to:

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• Born between 1995 and 2009

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• State and local laws affect EEO.

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• Court interpretations continuously change,

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• Title VII of the Civil Rights Act, as amended,

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• Amount of money involved in charge