CHAPTER 7

EMPLOYMENT LAW

PowerPoint Presentation by Charlie Cook

Copyright 2002 South-Western. All rights reserved
 Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws

Equal
Equal Pay
PayAct
Act (1963)
(1963)
Prohibits
Prohibitswage
wagediscrimination
discriminationbased
basedon
ongender
genderfor
forjobs
jobsthat
that
require
requireequal
equalskill,
skill,effort,
effort,and
andresponsibility
responsibilityand
andare
areperformed
performed
under
undersimilar
similarworking
workingconditions.
conditions.
Exceptions
Exceptionstotoequal
equalpay:pay:
Bona
Bonafide
fideseniority
senioritysystems
systems
Quality
Qualityofofjob
jobperformance
performance(i.e.,
(i.e.,merit-based
merit-basedpay
paysystems)
systems)
Quantity
Quantityofofoutput
output(i.e.,
(i.e.,piece-rate
piece-ratepay
paysystems)
systems)
Factors
Factors(contingencies)
(contingencies)other
otherthan
thansex
sex(gender)
(gender)

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 Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws

Civil
Civil Rights
RightsAct
Act (1964)
(1964)
Title
TitleVII
VIIprohibits
prohibitsdiscrimination
discriminationininemployment
employmentbased basedon on
race,
race,color,
color,religion,
religion,sex,
sex,and
andnational
nationalorigin.
origin.
Covers
Coversconditions
conditionsofofemployment:
employment:hiring,
hiring,firing,
firing,promotion,
promotion,
transfer,
transfer,compensation,
compensation,and andadmission
admissiontototraining.
training.
Applies
Appliestotoall
allprivate
privateemployers
employerswith
with1515orormore
moreemployees,
employees,
state
stateand
andlocal
localgovernments,
governments,educational
educationalinstitutions,
institutions,
employment
employmentagencies,
agencies,andandunions.
unions.
Established
Establishedthe theEqual
EqualEmployment
EmploymentOpportunity
OpportunityCommission
Commission
(EEOC)
(EEOC)totooversee
overseeand andenforce
enforceTitle
TitleVII
VIIand
andallallother
otherfederal
federal
labor
laborlaws.
laws.

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 Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws

Age
Age Discrimination
DiscriminationAct
Act (1967)
(1967)
Prohibits
Prohibitsemployment
employmentdiscrimination
discriminationagainst
againstemployees
employeeswho who
are
areage
age4040ororolder.
older.
Prohibits
Prohibitsthe
thesetting
settingofofmandatory
mandatoryretirement
retirementages
agesexcept
exceptinin
cases
casesofofpublic
publicsafety
safety(e.g.,
(e.g.,airline
airlinepilots).
pilots).
Amended
Amended19901990by byOlder
OlderWorkers
WorkersProtection
ProtectionActActwhich
which
prohibits
prohibitsdiscrimination
discriminationininthe
theprovision
provisionofofbenefits
benefitsand
andthethe
required
requiredsigning
signingofofage
agediscrimination
discriminationwaivers
waiversatatlayoff.
layoff.
Covers
Coversall
allemployers
employersincluding
includingthethefederal
federalgovernment.
government.

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 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
handicappedindividuals:
individuals:
Persons
Personswith
withphysical
physicalorormental
mentalimpairment
impairmentthat
thatsubstantially
substantially
limits
limitsone
oneor
ormore
moremajor
majorlife
lifeactivities.
activities.
Persons
Personswith
withaahistory
historyor
orrecord
recordofofsuch
suchimpairment.
impairment.
Persons
Personsregarded
regardedasashaving
havingsuch
suchananimpairment.
impairment.
Handicapped
Handicappedindividuals
individualsmust
mustbe beotherwise
otherwisequalified
qualifiedtoto
perform
perform(with
(withreasonable
reasonableaccommodation)
accommodation)the theessential
essential
functions
functionsofofthe
thejob
job(e.g.,
(e.g.,no
noblind
blindbus
busdrivers).
drivers).

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 Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws

Pregnancy
Pregnancy Discrimination
DiscriminationAct
Act (1978)
(1978)
Prohibits
Prohibitsemployers
employersfromfromdiscriminating
discriminatingagainst
againstpregnant
pregnant
employees
employeesby byrequiring
requiringpregnancy
pregnancyleaves
leavesandandthat
thatpregnancy
pregnancy
be
betreated
treatedasasany
anyother
othermedical
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
promoteon onthe
thebasis
basisofof
pregnancy.
pregnancy.
Employer
Employercannot
cannotprovide
providehealth
healthplans
plansthat
thatdodonot
notcover
cover
pregnancy.
pregnancy.

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 Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws

American
AmericanWith
With Disabilities
DisabilitiesAct
Act (1990)
(1990)
Prohibits
Prohibitsall
allemployers
employerswithwith15
15orormore
moreemployees
employeesfrom
from
discriminating
discriminatingagainst
againsthandicapped
handicappedpersons.
persons.
The
Thecourts
courtshave
haveissued
issuedambiguous
ambiguousand andconflicting
conflictingrulings
rulingson
on
medical
medicalconditions,major
conditions,majorlife
lifeactivities,
activities,and
andwhat
what
constitutes
constitutesaadisability.
disability.Decisions
Decisionsarearemade
madeon onaacase-by-
case-by-
case
casebasis.
basis.
Determination
Determinationofofreasonable
reasonableaccommodation:
accommodation:
Cost
Costof
ofaccommodation
accommodationand andresources
resourcesofofemployer
employer
Nature
Natureofofthe
thejob
joband
andworkplace
workplacesafety
safetyissues
issues
Any
Anyrelevant
relevantcollective
collectivebargaining
bargainingprovisions
provisions

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 Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws

Civil
Civil Rights
RightsAct
Act (1991)
(1991)
Extended
ExtendedTitle TitleVII
VIIcoverage
coveragetotofederal
federalemployees.
employees.
Allows
Allowslitigants
litigantstotosue
suefor
forcompensatory
compensatoryand andpunitive
punitive
damages.
damages.
Requires
Requiresaaheavier
heavierburden
burdenofofproof
proofononthe
thepart
partofofemployers
employers
ininrebutting
rebuttingclaims
claimsofofdiscrimination.
discrimination.
Provided
Providedextraterritorial
extraterritorialenforcement
enforcementofoffederal
federallabor
laborlaws
lawsinin
protecting
protectingU.S.U.S.employees
employeeson onoverseas
overseasassignments
assignmentswhere
where
Title
TitleVII
VIIcompliance
compliancedoes doesnot
notviolate
violatelocal
localcountry
countrylaws.
laws.

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 Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws

Family
Family and
and Medical
Medical Leave
LeaveAct
Act (1992)
(1992)
Requires
Requiresemployers
employerstotoprovide
provideupuptoto1212weeks
weeksofofunpaid
unpaid
leave
leavefor
forthe
thebirth,
birth,adoption,
adoption,ororserious
seriousillness
illnessofofaachild,
child,
family
familymember,
member,ororthe theemployee
employeeduring
duringaa12 12month
monthperiod.
period.
Act
Actonly
onlycovers
coversorganizations
organizationswithwithfifty
fiftyorormore
moreemployees.
employees.
Employee
Employeemustmusthave
havebeenbeenemployed
employedaaminimum
minimumofof25 25hours
hours
per
perweek
weekoror1,250
1,250hours
hoursyearly.
yearly.Employees
Employeesinintop top10%
10%ofof
employers
employerssalary
salaryrange
rangeare arenot
notcovered
coveredby bythe
theAct.
Act.
Employer
Employerisisrequired
requiredtotocontinue
continueemployees
employeesgroup grouphealth
health
coverage
coverageduring
duringleave.
leave.
Employee
Employeemustmustbebeallowed
allowedtotoreturn
returntotosame/equivalent
same/equivalentjob. job.

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Copyright 2002 South- 710
 EEOC
EEOC Enforcement
Enforcement of
of Federal
Federal Law
Law

Burden
Burden of
of proof
proof initially
initially falls
falls on
on the
the complainant
complainant
(employee)
(employee)totodemonstrate:
demonstrate:
Disparate
Disparatetreatment
treatmentinindeliberate
deliberatediscrimination
discriminationofofaa
protected
protectedclass
classindividual
individualoror
Disparate
Disparate(adverse)
(adverse)impact
impactas asaaresult
resultofofthe
theapplication
applicationofofaa
standard
standardorortreatment
treatmentapplied
appliedtotoall
allindividuals
individualsthat
thatresults
resultsinin
differential
differentialoutcomes
outcomesororconsequences
consequencesfor forprotected
protectedgroups;
groups;
usually
usuallydemonstrated
demonstratedstatistically
statisticallyusing
usingthe thefour-fifths
four-fifthsrule.
rule.
Four-fifths
Four-fifthsRule
Rulestates
statesthat
thatthe
theselection
selectionrate ratefor
forprotected
protected
class
classisisnot
not80%
80%ofofthetheselection
selectionrate
rateforforthe
themajority
majorityclass
class
then
thenaaprima
primafacie
faciecase
caseofofadverse
adverseimpact
impactisisestablished.
established.

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 EEOC
EEOC Enforcement
Enforcement of
of Federal
Federal Law
Law

Employers
Employers rebutting
rebutting aa discrimination
discrimination case:
case:
Must
Mustdemonstrate
demonstratejob-relatedness
job-relatednessofofany anycriteria
criteriautilized
utilizedininaa
selection
selectionprocess.
process.
Can
Canclaim
claimaabona
bonafide
fideoccupational
occupationalqualification
qualification(BFOQ)
(BFOQ)that that
requires
requiresthe
theemployee
employeetotopossess
possessaaparticular
particularpersonal
personal
characteristic
characteristicororbe
beaamember
memberofofaaparticular
particulargroup.
group.
Can
Canuse
useofofaabona
bonafide
fideseniority
senioritysystem
systemthat
thatwas
wasnotnotsetsetup
uptoto
intentionally
intentionallydiscriminate
discriminateagainst
againstaaprotected
protectedclass.
class.
Can
Canclaim
claimbusiness
businessnecessity;
necessity;that
thatthe
theselection
selectioncriteria
criteriaare
are
essential
essentialfor
forsafe
safeand
andefficient
efficientoperations
operationsofofthe
thefirm.
firm.

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 Affirmative
Affirmative Action
Action

Affirmative
AffirmativeAction
Action Plans
Plans
Require
Requireorganizations
organizationstotodevelop,
develop,implement,
implement,and andmaintain
maintainaa
program
programtotomake
makespecial
specialefforts
effortstotoinsure
insurethat
thattheir
theirworkforce
workforce
isisrepresentative
representativeofofthe
thesociety
societywhere
wherethe thebusiness
businessoperates.
operates.
Are
Arerequired
requiredfor
fororganizations
organizationswith
with100100ororemployees
employeesand and
with
with$50,000
$50,000orormore
moreininfederal
federalcontracts.
contracts.
Filed
Filedwith
withthe
theDepartment
DepartmentofofLabor
Laborand andmonitored
monitoredby bythe
the
Office
OfficeofofFederal
FederalContract
ContractCompliance.
Compliance.
Are
Areconsidered
consideredtemporary
temporarymeasures
measurestotocorrect
correctthe
the
underutilization
underutilizationofofcertain
certainprotected
protectedclasses.
classes.

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 Sexual
Sexual Harassment
Harassment

Supreme
Supreme Court
Court rulings:
rulings:
Meritor
MeritorSavings
SavingsBank
Bank
Sexual
Sexualharassment
harassmentisisaaform
formof
ofsexual
sexualdiscrimination
discriminationunder
under
Title
TitleVII.
VII.
Oncale
Oncalev.v.Sundowner
SundownerOffshore
OffshoreServices
Services
Same-sex
Same-sexharassment
harassmentisisactionable
actionableunder
underTitle
TitleVII.
VII.
Sexual
Sexual harassment
harassment (definition)
(definition)
isisan
anindividuals
individualsclear
clearrejection
rejectionofofan
anoffensive
offensiveand
and
inappropriate
inappropriate(unwelcome)
(unwelcome)advance.
advance.

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 Forms
Forms of
of Sexual
Sexual Harassment
Harassment

Quid
Quid pro
pro Quo
Quo
The
Thepromise
promiseororuse
useofofwork-related
work-relatedbenefits
benefitsororthreats
threatstoto
bargain
bargainwith
withororcoerce
coerceananindividual
individualfor
forsexual
sexualfavors.
favors.
Hostile
Hostile working
working environment
environment
The
Thepresence
presence(perceived
(perceivedororactual)
actual)ofofan
anoffensive
offensiveoror
threatening
threateningenvironment.
environment.
Harassment
Harassment standards
standards used
used by
by the
the court:
court:
The
Thereasonable
reasonablewoman
womantest.
test.
Pattern
Patternofofbehavior
behavior(frequency
(frequencyandandpervasiveness)
pervasiveness)ororisolated
isolated
event/act
event/actofofan
anindividual.
individual.
Response
Responseofofthetheorganization
organizationtotothe
thecomplaint.
complaint.
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Copyright 2002 South- 716
 Sexual
Sexual Harassment
Harassment

Copyright 2002 South- 717