COMPENSATION

THROUGH
Understanding Equal
Opportunity and the
Legal Environment
CHALLENGES
Explain why compliance with HR law is an
important part of doing business.
Follow changes in HR law, regulation, and court
decisions.
Manage within equal employment opportunity
laws and understand the rationale and
requirements of affirmative action.
Make managerial decisions that will avoid legal
liability.
Know when to seek the advice of legal counsel
on HRM matters.
WHY UNDERSTANDING THE
LEGAL ENVIRONMENT IS
IMPORTANT
Doing the Right Thing
First and foremost, compliance with the law is
important because it is the right thing to do.
Realizing the Limitations of HR and Legal
Departments
If managers make poor decisions, the HR
department will not always be able to resolve
the situation.
Limiting Potential Liability
Considerable financial liabilities can occur
when HR laws are broken or perceived to be
broken.
FAIR EMPLOYMENT
Fair employment is the goal of EEO
legislation and regulation: a
situation in which employment
decisions are not affected by illegal
discrimination.
AVOIDING ILLEGAL
DISCRIMINATION
Do the right thing!ethical, sound, common sense
management practices applied consistently will
help achieve organizational goals and avoid EEO
lawsuits

SPECIFICALLY RECOMMENDED
PRACTICES
Provide training
Establish a complaint resolution process
Document job-related reasons for decisions
Be Honest
Ask only for information you need to know
EQUAL EMPLOYMENT OPPORTUNITY
(EEO) PRINCIPLES
Same pay for same job
Employment decisions may not be
based on race, color, religion, sex, or
national origin. (age and disability
added later)
Women are protected from
discrimination on the basis of
pregnancy or the ability to become
pregnant.
EQUAL EMPLOYMENT OPPORTUNITY
(EEO) PRINCIPLES (CONTINUED)
Employers must protect their
employees against unlawful
harassment.
Affirmative action should be taken to
promote the employment status of
protected classes
Employment discrimination is
prohibited against individuals with
disabilities.

SAME PAY FOR SAME JOB
1963 law aimed at gender equity

same pay

same job

Exceptions
EMPLOYMENT DECISIONS MAY NOT
BE BASED ON RACE, COLOR,
RELIGION, SEX, OR NATIONAL
ORIGIN
Originally part of 1964 Civil Rights Act
Outlaws two forms of discrimination
Burden of proof is on the employer
Defenses
TITLE VII OF THE CIVIL RIGHTS ACT
OF 1964
(1) to fail or refuse to hire or to discharge any individual, or
otherwise to discriminate against any individual with respect
to his compensation, terms, conditions, or privileges or
employment, because of such individuals race, color,
religion, sex, or national origin; or
(2) to limit, segregate, or classify his employees or applicants
for employment in any way which would deprive or tend to
deprive any individual of employment opportunities or
otherwise adversely affect his status as an employee,
because of such individuals race, color, religion, sex, or
national origin.
Section 703. (a) It shall be an unlawful employment practice for an
employer
TWO KINDS OF DISCRIMINATION
Disparate Treatment Adverse Impact
Direct discrimination

Unequal treatment

Decision rules with a racial/
sexual premise or cause

Intentional discrimination

Prejudiced actions

Different standards for different
groups
Indirect discrimination

Unequal consequences or results

Decision rules with a racial/
sexual consequences or results

Unintentional discrimination

Neutral actions

Same standards, but different
consequences for different
groups
FOUR-FIFTHS RULE
An EEOC provision for establishing a
prima facie case that a HR practice is
discriminatory and has an adverse
impact. A practice has adverse impact if
the hiring rate of a protected class is
less than four-fifths the hiring rate of a
majority group.
WOMEN ARE PROTECTED FROM DISCRIMINATION
ON THE BASIS OF PREGNANCY OR THE ABILITY TO
BECOME PREGNANT
1978 amendment to Civil Rights Act
employees who are pregnant must be treated the same way as any
employee who has a medical condition
EMPLOYERS MUST PROTECT THEIR
EMPLOYEES AGAINST UNLAWFUL
HARASSMENT.
Started with sexual harassment protection in 1980 EEOC regulations
quid pro quo
hostile work environment

Expanded in 1993 to harassment of other protected classes

Best defense?
EEOC DEFINITIONS OF
HARASSMENT
Unwelcome sexual advances, requests for sexual favors, and
other verbal or physical conduct 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 individuals employment;
2. submission to or rejection of such conduct by an individual
is used as a basis for employment decisions affecting such
individual; or
3. such conduct has the purpose or effect of unreasonably
interfering with an individuals work performance or creating
an intimidating, hostile, or offensive working environment.
1980 Definition of Sexual Harassment

EEOC DEFINITIONS OF
HARASSMENT
Unlawful harassment is verbal or physical conduct that
denigrates or shows hostility or aversion toward an individual
because of his or her race, color, religion, gender, national
origin, age or disability, or that of his/her relatives, friends,
or associates, and that:

1. has the purpose or effect of creating an intimidating, hostile,
or offensive working environment.
2. has the purpose or effect of unreasonably interfering with an
individuals work performance; or
3. otherwise adversely affects an individuals employment
opportunities.
1993 Definition of Harassment

DO YOU HAVE A HOSTILE WORK
ENVIRONMENT?
The Supreme Court listed these questions to help judges and
juries decide whether verbal and other nonphysical behavior
of a sexual nature create a hostile work environment.

How frequent is the discriminatory conduct?
How severe is the discriminatory conduct?
Is the conduct physically threatening or humiliating?
Does the conduct interfere with the employees work
performance?
AFFIRMATIVE ACTION SHOULD BE TAKEN TO
PROMOTE THE EMPLOYMENT STATUS OF
PROTECTED CLASSES.

Originated with Executive Order in 1965
refined by amendments to Civil Rights Act,
regulations, and court decisions
Required of firms with government contracts of over
$50,000 and more than 50 employees
EMPLOYMENT DISCRIMINATION IS PROHIBITED
AGAINST INDIVIDUALS WITH DISABILITIES
ADA 1990

Define disabilities

Essential job functions

Reasonable accommodation
AMERICANS WITH
DISABILITIES ACT (1990)
The law forbidding employment
discrimination against people with
disabilities who are able to perform
the essential functions of the job
with or without reasonable
accommodation.