Running head: EMPLOYEE RETENTION 1

EMPLOYEE RETENTION-MCDONALD’s

Name of Student

Institution Affiliation
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Contents
1. Overview ............................................................................................................................ 3
2. Law ..................................................................................................................................... 4
3. Cases of Discrimination by McDonald’s............................................................................ 5
4. Policies and Procedures for Avoiding Litigation ............................................................... 8
5. Prevention of Lawsuit and Discrimination ....................................................................... 12
6. Conclusion ........................................................................................................................ 14
7. References ........................................................................................................................ 16
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1. Overview
Employee retention is the capability of a company to retain its employees. The retention

rate of a company is characterized by a simple statistic. For instance, if an organization has an

80% retention rate it means that the company kept 80% of its employees in a specific period.

There are many employee retention policies that are implemented to enhance employee job

satisfaction and decrease the extensive cost that is associated with the recruiting and training

of new employees.

Employees leave a company due to many reasons such as discrimination, and better

salary package is the major reason. Organizations spend a lot of money on recruitment and

retention of employees. Therefore, firms bear loss when a talented and experienced employee

leaves the company. Retaining skilled employees is the major issue that most of the firms are

facing. A high employee turnover rate results in the loss of skills and knowledge.

Most of the organizations are facing the high turnover rate issues due to the workplace

discrimination. Over the years, firms have developed different policies that are applied to

retain employees in an effective manner. The U.S government has made an equal

employment opportunity law and many companies implement the law at the workplace.

Organizations use different strategies to increase employee collaboration and decrease

turnover rate. There are multiple factors that affect employee retention such as recognition,

good leadership, compensation, and positive relationships with staff and the immediate

supervisor.

Employee retention is an important subject of inquiry in the industry. Companies adopt

different strategies to increase employee commitment, give career development opportunities,

and encourage them to achieve their organizational goals. Firms create an effective

environment so employees can stay in the company for a long time. Research has proved that

the retention of valuable employees is significant for the survival of the company.
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2. Law
The U.S department of labor applies more than 180 federal employment laws. For instance,

the Equal Employment Opportunity Act states that employers cannot discriminate against job

applicants on the basis of age, color, religion, race, gender, and national origin. It is illegal to

discriminate employees if they participate in an employment discernment lawsuit or

investigation, or field a charge of discrimination (EEOC, 2018a). The law is applied to all

kinds of working situations counting firing, harassment, hiring, promotions, wages, training,

and benefits.

Employees leave the company for the better working environment and move to those

organizations where they do not face any kind of discrimination. All small, medium, and

large firms are required to implement the law and retain talented employees. The jobs and

benefits must be considerably equal without any kind of discrimination. The law covers all

types of pay such as overtime pay, basic pay, stock options, bonus, life insurance, profit

sharing, and much more. Therefore, organizations cannot discriminate against employees in

any situation.

If employees get an equal salary, benefits, and recognition they are less likely to leave the

company. McDonald’s was forced by law to provide fair salary to employees without color,

race, and gender discrimination. According to the law, McDonald’s should provide

accommodations for disabled workers, authorize legal workers, and provide fair working

conditions (EEOC, 2018b). Therefore, employees prefer to work in a company that offers

facilities and safe working environment.

In 1986, the Immigration Reform and Control Act influenced fast food companies especially

McDonald's. The law enforced employers to confirm the suitability of employment for newly

hired workers. Before the law, McDonald's hired many illegal workers and paying less salary.
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Now companies cannot hire illegal workers and they provide verification for all employees

working for the company.

3. Cases of Discrimination by McDonald’s

There are different cases that are covered under the Equal Employment Opportunity Act.

An employer or a company violating the EEOC laws can be sued by employees or job

applicants. The U.S Equal Employment Opportunity Commission proclaimed that the

organization filed 84,254 workstation discernment charges in the country during 2017.

The company secured $398 million for sufferers in the state, the private division, and

local administration firms through voluntary litigation and resolutions.

McDonald’s implements the law and follows all rules and regulations. However, there are

some cases in which McDonald’s did employment discrimination. Some of the cases are

mentioned below.

3.1 Disability Discrimination Lawsuit

According to the Equal Employment Opportunity Commission (EEOC) report, a

management person from McDonald's refused to conduct an interview with a deaf

applicant. The Federal Agency announced that McDonald’s Restaurant and McDonald’s

Corporation of Missouri has to pay $54,500 and provide other aid to resolve the disability

discrimination suit by the United States Equal Employment Opportunity Commission

(EEOC). The fine was charged because McDonald's refused to conduct an interview with

an applicant due to his deafness.

As per EEOC lawsuit, in 2016, the candidate applied for a position in McDonald’s. The

applicant who was unable to speak or hear had worked previously at McDonald’s. He

worked as a clean-up and cook team member at McDonald’s in another state. When the
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restaurant manager came to know that the candidate needed an indication linguistic

translator for his job interview, she cancelled the job interview. The applicant made

several attempts to reschedule the interview but the restaurant continued to interview and

recruit people.

The Americans with Disabilities Act of 1990 protects disabled people regarding

employment. This action disrupted citizens with disabilities and EEOC filed its suit under

district court of the Western District of Missouri. Apart from that, monetary relief was

also given to the job applicant. The commission forced the company to provide equal

employment opportunities and reasonable accommodation to disabled employees and

applicants (EEOC, 2016c). The restaurant is required to preserve a telephone line for

applicants so they can request accommodation through call and the company will submit

yearly obedience reports to EEOC.

Disability discrimination occurs when an employer treats an applicant or employees

unethically on the basis of his/her disability. The Equal Employment Opportunity Act and

American with Disability Act 1990 require a company to treat the disable employee or an

applicant fairly and provide a reasonable accommodation. The law also protects people

that have relationship with disable employees or applicants. For instance, it is unlawful to

victimize against an employee because her husband has a disability (EEOC, 2018d). The

law forbids all kind of discrimination at the workplace so employees can perform their

jobs in an effective way.

3.2 Workplace Harassment Lawsuit

Different accusations are filed with EEOC regarding workplace harassment at McDonald’s.

The complaints are filed in eight U.S States including New York, California, Wisconsin,

Florida, North Carolina, Missouri, Illinois, and Florida. The incidents of harassment occurred
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in McDonald’s franchises. Some women workers were harassed by male supervisors. The

workers tried to complaint McDonald’s management but they did not give any response

(Kasperkevic, 2016). EEOC filed a suit against the McDonald’s and forced the fast food

chain to implement zero tolerance for sexual harassment at the workplace. Harassment is a

kind of discrimination that violates Civil Rights Act of 1964 (EEOC, 2018e). Harassment at

workplace is illegal if it is based on race, age, gender, disability, and religion. Employees can

file a case against employer to protect his civil and equal employment opportunity rights.

3.3 Age Discrimination Lawsuit

A woman name Peckinpaugh has filed a litigation claiming a McDonald’s restaurant in

Missouri fired her after 30 years of service due to her gender and age. The litigation

establishes the Missouri Human Rights Acts and Age Discrimination Employment Act 1967.

The defender is involved in discrimination practices at the workplace. In 1989, the worker

was hired at Pacific McDonald’s and she provided her services for almost three decades and

she terminated in 2017. Peckinpaugh claimed that the company failed to provide the safe

working environment, sexually harassed, discriminated due to age, and ignored petitions for

protection when she was harassed by other employees working at McDonald’s (Elizabeth,

2018). The law protects employees from illegal and unfair employment practice. If an

employee is being treated unfairly at the workplace due to their age they can sue their

employer. Firms are not allowed to hire, promote, fire, and compensate employees on the

basis of their age. Organizations are required to provide a safe working environment without

any kind of discrimination (Buckley, 2015). The EEOC encourage employees to file a case

against discrimination at the workplace.

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3.4 Racial Discrimination Lawsuit

McDonald’s faced a lawsuit of racial discrimination. Two employees working in McDonald’s

Virginia franchise filed the lawsuit and claimed that they faced race and gender

discrimination by restaurants’ supervisor. However, the case is settled under new labor law

developments that deliver a stimulating current look at employee discrimination cases in the

fast food franchise industry. EEOC charged a heavy fine to McDonald's for violations of anti-

discrimination laws (Shah, 2018). Many other big firms are also sued for racial

discrimination because minority employees agonize at the workplace. The U.S law does not

allow companies to do any kind of discrimination among its employees and customers

(Kareem Nittle, 2018). Under the law, all people are equal and companies cannot do any

kind of discrimination.

4. Policies and Procedures for Avoiding Litigation

There is a diverse range of policies and procedures that are implemented by companies to

avoid lawsuit. The U.S Equal Employment Opportunity Commission (EEOC) data

discloses that many companies face litigation every year. There is a significant increase in

employment discrimination cases (Heathfield, 2018). All businesses either small or large

have the threat of lawsuit so they should be managed with care and attention. Small firms

have limited resources and funds so they cannot afford the heavy cost of EEOC

litigations, but large organizations can manage to pay the required fine.

To prevent devastation, businesses must take precautionary steps and stay informed with

the latest information to decrease huge loss or damage. To decrease the threat of a lawsuit

based on discernment, companies should adopt and implement policies at the workplace

in order to avoid the biased behavior. The company should make it possible for workers

to report the management when they are treated incongruously. The subsequent
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guidelines can assist McDonald’s and other organizations to reduce chances of litigation

at the workplace.

 Document all Incidents of Employees

The management of a company is expected to document all incidents because it is difficult to

defend a lawsuit if a worker file is invalid and contains irrelevant details. Keeping a record is

beneficial for both employees and the company. If the firm will have relevant data it can

solve problems easily.

 Train Employees

Organizations can provide training to employees regarding workplace policies, response to

complaints, and rules. The discipline of the company should be communicated to employees

in a way that they maintain individual self-esteem. The company should provide ongoing

education about policies so employees can follow them carefully. Conducting a review

session can help the company to evaluate the understanding of employees.

 Implement Fair Employment Act

The company can implement a fair employment act to reduce and avoid discrimination

litigations. Organizations are required to follow all rules and regulations delivered by the U.S

Equal Employment Opportunity Commission. When a company terminates a worker, it

should provide a valid and lawful reason so employees cannot file a lawsuit.

 Check Employee Background

Organizations should check the background of candidates before hiring them.

Background checking can save the company from different kinds of illegals acts at the

workplace.

 Open Door Policy

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Firms should promote open door policy to protect equal benefits for all employees. For

instance, all employees should get a chance to communicate with higher management

about their workplace issues. The policy can help the company to solve the issue and

satisfy workers by taking a positive action. If employees will be satisfied in the workplace

they will not file a lawsuit against the company (Sepahi Law Group, 2018). Employers

face the biggest threat from employees is a discrimination law.

 Develop and Implement Equal Employment Policy

Companies can develop and implement equal implement policy to avoid any kind of

discrimination. Define behavior that establishes discrimination in the workplace. The firm

should emphasize employee commitment to deal with discriminatory actions at the

workplace (World Policy Center, 2017). The policy must be comminuted to all employees

so they should be aware of unacceptable behavior at the workplace.

 Develop Effective Compliant System

Organizations can avoid discrimination litigation by developing an effective complaint

system. Firms should encourage employees to report the issues immediately. The

management is required to take immediate action to avoid lawsuits. Companies should

keep complaint confidential and solve it in an effective manner. The company should

mention the measures that the management can take to handle a complaint. It will prepare

an employee for the whole procedure.

 Awareness Training for Supervisors

The awareness training session entails supervisors to join intermittent training on how to

identify and avoid discriminatory act and what actions should be taken if a biased

demeanor is perceived or stated. Emphasize the responsibility of the manager under the

strategy and their role in preserving a workplace environment without discrimination

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(England, 2015). The company must highlight the allegations of violations of the strategy

and the significance of managing all claims of discrimination punctually and earnestly.

 Remove Unnecessary Considerations

The company should eliminate considerations that have no link with the capability of

employees. Documentation and communication of the company should be transparent and

appropriate so that it cannot be used against the firm. Employees should be hired

according to positions’ responsibilities and required skills.

 Establish Norms and Culture

Organizations are advised to establish a positive working environment that is free from all

kinds of discrimination. The roles and responsibilities of all employees should be defined

carefully. The equal salary and benefits should be given to men and women workers at

the workplace. The company should motivate employees to achieve their personal and

professional goals. A collaborative and positive culture can solve many issues in the

workplace and it can save firms from lawsuits.

Many people are discriminated against in the workplace due to their color, age, gender,

race, and religion. There should be an equal employment opportunity for all people so they

can get a respectable job in their desired organizations. In addition, firms can apply an

efficient investigation system to solve discrimination cases. All employees should be aware

of the consequences of engaging in discriminatory case. The companies are needed to make

the latest amendments in the law for better application and results. All above mentioned

policies can help organizations to reduce workplace discrimination and litigations.

Only those companies can avoid EEOC lawsuit and charges that set strong measures to

address and prevent harassment, and retribution, employment discrimination. The laws work

in favor of employees and company so their implementation is significant to avoid any kind

of damages. Employees should have options for different methods so they can make a
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complaint in an effective way. Many companies provide training to the management so they

can handle complaints in a positive way.

The risk of lawsuits requires a confirmatory action plan to increase the contribution of

women and minorities in the company. The assenting action plan should contain an

assessment of the current workers, equal opportunity policy statement, development of goals

and objectives, identification of problem areas, internal audit, and support for community

action programs. All of these steps can help the firm to avoid litigations and maintain a

healthy working environment.

5. Prevention of Lawsuit and Discrimination

The U.S Equal Employment Opportunity Commission provides different kinds of

employment and discrimination laws including disability, retaliation, national origin, age, and

religion. The Equal Employment Opportunity Law supports companies to retain employees

and avoid workplace litigations (Sperino & Thomas, 2017). Organizations are required to

implement the laws in order to create a safe working environment.

The U.S law is preventing lawsuits against discrimination in the workplace. Many companies

have implemented the law and received beneficial results. However, the percentage of

lawsuits is not decreased yet. Many firms are trying to avoid workplace discrimination so

they have created a culture with a diverse workforce and encouraged the employee to work

with collaboration. Encouraging diversity is beneficial for the company.

Employers have adopted different serious guidelines in order to prevent discrimination and

lawsuits. The EEOC cost for employers has increased so settling an issue has become

expensive. The defense cost of a single average claim is $250,000 and adjudicator decision

costs $200,000. Consequently, companies are trying to mitigate discrimination issues.

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McDonald's have also implemented the Equal Employment Act and provided jobs to many

people without any kind of discrimination.

McDonald’s have established equal employment policy is applied to all stakeholders such as

applicants, and employees. Now people can apply for a job at McDonald's and they will be

hired if they have the required skills and experience. Moreover, the firm has made policies

against sexual harassment and applied the policies strictly. All employees follow policies

carefully so they can avoid any kind of lawsuit (Robinson, 2013). The company has started a

disability program so disable people can get respectable jobs according to their experience

and ability.

McDonald's focuses on employee retention and provide multiple benefits so they stay in the

company for a long-time period. Employees prefer to work in a collaborative and safe

working environment. Therefore, the company is providing the best working conditions and

hires full time workers. According to McDonald's, the full-time employee receives more

benefits than part-time employees (Colella & King, 2018). Many employees like to work for

the company because they are satisfied with their salary package and compensation plan.

The management evaluates the working environment and conducts a meeting to find out any

kind of case that can cause serious problems. Employees discuss their issues with the

management and their problems are solved on an immediate basis. However, there is a need

to implement the equal employment act properly in order to get positive results. Many cases

in McDonald’s are not solved yet so they should be solved as soon as possible.

In my opinion, there is a need to implement strong policies for harassment in the workplace.

Almost 15 cases of harassment are filled against McDonald's, so the company should take

serious action to protect its image in the industry. Many people do not like to join the

company due to the unsafe working environment. Women face discrimination in the
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workplace and they are harassed by male supervisors (Berrey & Nelson, 2017). Therefore,

women should get a protective working environment so they can continue working at

McDonald’s.

Many people have left the company because they faced racial, religious, color, and

harassment. These cases are negatively impacting the goodwill of the company. Thus, the

company should take a serious action and avoid further lawsuits (Tehrani, 2013). The U.S

laws cover all the necessary information that can save the company from litigations.

In some organizations, there is a mismatch between their statements and actions. For

instance, McDonald’s claimed that its recruitment policy is transparent and it gives equal

employment opportunity to all people. However, the case of a deaf young man proved that

McDonald’s do discriminations at the workplace (Pinkos Cobb, 2018). The employment

policy of the company does not serve applicants and employees in the best possible way.

Successful companies align their policies with the federal law in order to avoid any kind of

problem. The correct alignment helps companies to understand the law avoid from critical

situations. Small companies pay less salary to their employees as compared to the large

companies. Therefore, employees are not satisfied with their jobs and they find better jobs. If

the organizations will implement the Salary Act then they can retain their employees.

6. Conclusion

Workplace discrimination is the major issues that most of the companies are facing. The most

common lawsuit is discrimination in the workplace. It is the basic right of employees to be

free from any kind of discrimination at their workplace. Different federal laws are imposed

by the U.S Equal Employment Opportunity Commission (EEOC). These laws protect

employees against compensation, age, gender, racial, color, and religion discrimination.
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Companies are required to protect their rights against federal employment and labor laws.

The U.S employment law prohibits discrimination among employees so companies should

implement and follow the law carefully. Employees prefer to work in a company that offers

equal salary, and protective working environment. In the United States, many lawsuits are

filed against sexual harassment at workplace and women face difficulties during the job.

There is a need to implement federal laws and submit a performance report to EEOC

so the Commission can track the performance of firms. Companies retain employees by

offering high salary and benefits, but they forget to provide non-discriminatory and safe

working environment. Safety is the main concern of employees so it should receive special

attention. Companies seem to neglect the issue which creates many problems for employees.

In 2017, the EEOC has filed 84,254 workplace discrimination charges in the country.

However, the ratio of discrimination cases is not decreased in companies yet. The firms are

required to take proactive steps to eradicate harassment and illegitimate partialities in

procedures and decisions. Organizations create a collaborative working environment so

employees can work together with dedication and maintain strong interpersonal relationships.

The unemployment rates for disabled people are high then the general population in

the United States. Companies create different barriers to employment when they unable to

provide functional housings to disable applicants. This behavior is unlawful and it should be

avoided. Companies educate their employees and provide knowledge about the policies that

prevent lawsuits. If employees get proper training regarding the importance and

implementation of the Act then they will be less likely to breach the law. The involvement in

harassment or discrimination cases can become low. Organizations are advised to create a

culture that discourages harassment, employment discrimination, and preclude employment

discrimination.
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7. References

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Colella, A., & King, E. (2018). The Oxford Handbook of Workplace Discrimination (p. 488).

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England, D. (2015). The Essential Guide to Handling Workplace Harassment &

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