Chapter 3

Understanding
Equal Opportunity and
The Legal Environment
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Chapter 3 Overview

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 (EEO) Laws and understand the
rationale and requirements of affirmative
action
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Chapter 3 Overview

Make managerial decisions that will

avoid legal liability

Know when to seek the advice of legal

counsel on HRM matters

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The Legal Environment

It is important for the HR team to

have a good understanding of
the legal environment.

HR must work with managers to

help them understand the legal
issues surrounding their
relationship with their employees

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Understanding the Legal

Environment
It is important to understand the legal
environment so you can
Do the right thing
Realize the limitations of the human
resources and the laws.
Limit potential liability and costly
lawsuits

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Challenges to Legal Compliance

A Dynamic Legal
Landscape
The Complexity
of Laws

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Conflicting Strategies for Fair

Employment

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Equal Employment Opportunity Laws

The Civil Rights Acts of 1964 and 1991

The Equal Pay Act of 1963

The Age Discrimination in Employment Act of

1967

The Americans with Disabilities Act of 1990

The Vietnam Era Veterans Readjustment Act of

1974
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Title VII of the Civil Rights Act of 1964

Employment decisionsnot based on:
Race, Color, Religion, Sex or National
Origin
Protected classes defined
African American, Asian American,
Native American, Latinos, and women

Discrimination
Disparate treatment
Adverse impact

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Title VII Continued

Four-fifths rule
Defense of Discrimination Charges
Job relatedness
BFOQBona Fide Occupational
Qualification
Seniority
Business necessity

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Title VII Continued

Title VII and Pregnancy (1978)
Sexual Harassment
Quid pro quo (strict liability)
Hostile work environment(reasonable
care)

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Managers Notebook
Reducing Liability for Sexual Harassment:
Establish a written policy prohibiting
harassment
Communicate the policy to employees
Train employees in what constitutes
harassment
Establish an effective complaint procedure
Quickly investigate all claims
Take remedial action to correct past
harassment
Make sure that the complainant does not
end up in a less desirable position if
transferred
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How to Handle a Sexual Harassment

Investigation

Timeliness
Documentation
Employee
agreement
Resolution
Findings of fact
Remedy

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EEO Laws Continued

The Civil Rights Act of 1991
Employer bears burden of proof
Prohibits quotas
Allows payment of punitive damages

Executive Order 11246 (1965)

Prohibits discrimination by govt. and
govt. contractors
Required to develop affirmative action
programs
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EEO Laws Continued

The Equal Pay Act of 1963
Same pay to men & women in same job
May differ based on quality or quantity
of production
Seniority plans exempt
Does not prohibit use of merit pay

The Age Discrimination in

Employment Act of 1967
Protects employees over age 40
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EEO Laws Continued

Americans with Disabilities Act (1990)

Protects those with disabilities
Physical or mental
That impair a major life
activity
Must provide reasonable
accommodation for essential job
functions
Individual must be otherwise
qualified for job
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Equal Employment Opportunity Laws

Continued
The Vocational Rehabilitation Act of
1973
The Vietnam Era Veterans
Readjustment Act of 1974

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EEO Enforcement and

Compliance

Regulatory Agencies
Equal Employment Opportunity
Commission (EEOC)

Process Discrimination complaints

Issue written regulations and guidelines
Collects and disseminates information

Office of Federal Contract

Compliance Programs (OFCCP)

Actively monitors compliance

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EEO Enforcement and

Compliance
Affirmative Action Plans
Utilization Analysiscompare:
Organizations workforce to
demographic composition of labor
force

Establish Goals and

Timetables
Action Plans
Decide what steps to take

Reverse Discrimination

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Other Important Laws

Immigration Reform and Control
Act of 1986
Immigration Act of 1990
Drug-Free Workplace Act of 1988
Uniformed Services Employment
and Reemployment Rights Act of
1994

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Decision Making to Avoid Legal

Liability
Managers must be cognizant of the
legal landscape and make decisions
that help them avoid legal liability
Most employees fall into a protected
class so sound practice is essential.

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Avoiding Pitfalls in EEO

Provide Training
Document Decisions
Be Honest
Establish a Complaint Resolution
Process
Ask Only for Info You Need to Know

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Avoiding Pitfalls
Sound business decision making
will lead to a climate that avoids
legal pitfalls and positively impacts
the bottom line.
Get legal help when necessary

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Summary and
Conclusions

Lawsuits are costly

Equal Employment Opportunity Laws
Pertain to both sexes and same sex
issues
Questions must be justifiable by the job
Courts upheld affirmative action
complaints
To defend a complaint, business must
show:
Exercised reasonable care to prevent
and correct sexual harassment problems
Internal procedures were viable and
plaintiff failed to use them
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Copyright

All rights reserved. No part of this publication

may be reproduced, stored in a retrieval system,
or transmitted, in any form or by any means,
electronic, mechanical, photocopying, recording,
or otherwise, without the prior written
permission of the publisher. Printed in the
United States of America.

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