The Legal Environment Chapter 3 Part 1 MGT 3513 Dr. Marler “The more laws and order are made prominent, The more thieves and robbers there will be.” Lao-tzu

ANNOUNCEMENTS

Coming Soon…Exam 1!  Exams 50 multiple choice questions Review your slides & notes. Study ALL slides – the ones that have “question marks” and the ones that don’t!!! Get notes from a friend to make sure you got all the important info during class!

Memorization Specific Examples NEW Scenarios Info about test questions: Coming Soon…Exam 1!

Just a thought: Print slides in Notes View 1. Write your answers below slide in one color 2. Take notes during class in another color

Coming Soon…Exam 1!  Effective Exam Preparation See course website for suggestions. If you have questions as you are studying, me!

Chapter 3

Questions on the Legal Environment  There are three reasons why we should understand the legal environment according to the text. What are these three reasons? * We will discuss FEDERAL law only, not state law which differs from state to state.

Questions on the Equal Pay Act  What does the Equal Pay Act guarantee?  Explain the following exceptions to the Equal Pay Act Merit pay plan Quantity and quality of production Seniority Any factor other than sex  What is the gap between men’s and women’s earnings in the U.S.?

Questions on Title VII of the Civil Rights Act  Title VII prohibits employers from basing employment decisions on what five things?  What is a protected class?  What is discrimination?  2 types of illegal discrimination What is disparate treatment? What is adverse impact?

What’s in a name?  C7IVU#t=57 C7IVU#t=57

Questions on Disparate Treatment  What is meant by “prima facie”?  For a disparate treatment lawsuit, what are the three things that must occur to establish a prima facie case? (In other words, how do we know if we might have a legitimate case of intentional discrimination?)

Adverse Impact  Griggs vs. Duke Power case Adverse impact  Albemarle Paper Company vs. Moody case Employment test  Four-fifths rule Determines_____________________________ 4/5 = 80 %

Workplace Discrimination: Examples & practice applying the 4/5s rule

Example #1  Assume an organization interviews 40 male applicants and 30 female applicants for a sales associate position. The organization decides to hire 20 males and 6 females. Has adverse impact occurred?

Determining Adverse Impact: Applying the 4/5’s rule 1. Determine selection rate of each group selection rate = # hires per group # of applicants per group 2. Determine group with highest selection rate 3. Calculate selection rate threshold Take the rate of the majority group and multiple it by 4/5 (.8 in your calculator) 4. Compare the lowest selection rate to the threshold If the selection rate of the minority group is < the threshold, adverse impact has occurred

GroupsApplicantsHiresSelection rate = hires/appli cants Selection Threshold (majority rate x.8)

GroupsApplicantsHiresSelection rate = hires/appli cants Selection Threshold (majority rate x.8) Male Female

GroupsApplicantsHiresSelection rate = hires/appli cants Selection Threshold (majority rate x.8) Male40 Female30

GroupsApplicantsHiresSelection rate = hires/appli cants Selection Threshold (majority rate x.8) Male4020 Female306

GroupsApplicantsHiresSelection rate = hires/appli cants Selection Threshold (majority rate x.8) Male4020 = 20/40 Female306= 6/30

GroupsApplicantsHiresSelection rate = hires/appli cants Selection Threshold (majority rate x.8) Male4020 = 20/40 = 50 % Female306= 6/30 = 20 %

GroupsApplicantsHiresSelection rate = hires/appli cants Selection Threshold (majority rate x.8) Male4020 = 20/40 = 50 % = 50 % x.8 = Female306= 6/30 = 20 %

GroupsApplicantsHiresSelection rate = hires/appli cants Selection Threshold (majority rate x.8) Male4020 = 20/40 = 50 % = 50 % x.8 = 40 % Female306= 6/30 = 20 %

GroupsApplicantsHiresSelection rate = hires/appli cants Selection Threshold (majority rate x.8) Male4020 = 20/40 = 50 % = 50 % x.8 = 40 % Female306= 6/30 = 20 % Compare MINORITY RATE with SELECTION RATE THRESHOLD

GroupsApplicantsHiresSelection rate = hires/appli cants Selection Threshold (majority rate x.8) Male4020 = 20/40 = 50 % = 50 % x.8 = 40 % Female306= 6/30 = 20 % Compare MINORITY RATE with SELECTION RATE THRESHOLD

GroupsApplicantsHiresSelection rate = hires/appli cants Selection Threshold (majority rate x.8) Male4020 = 20/40 = 50 % = 50 % x.8 = 40 % Female306= 6/30 = 20 % 3 POSSIBLE SITUATIONS: Minority rate is less than Minority rate is the same Minority rate is greater than

Practice Question: Did adverse impact occur??? 1. Selection Rates Males = 20/40 = 50 % Females = 6/30 = 20 % 2. Males have highest selection rate (50%) 3. Calculate selection rate threshold Highest rate x 4/5 (or.80) 50% (50 in your calculator) x 4/5 (.80 in your calculator) = 40% 4. Compare lowest selection rate to threshold

Practice question: Workplace discrimination  April applies for a job as a mortgage broker at Lenny Lending. Fred, the hiring manager, decides not to hire April because in his experience men are better brokers than women.  Has discrimination occurred?  If so, which kind? (adverse impact or disparate treatment)

Practice question: workplace discrimination  Advanced accounting prides itself in hiring employees based on qualifications and strives for a diverse workforce. However, in order for an employee to be promoted to manager, s/he must pass a test. In the firm, there are substantially fewer female managers because few pass the promotion test.  Has discrimination occurred?  If so, which kind?

Is it ever legal to discriminate?  Yes, in certain cases.  Describe the following exceptions to Title VII ( Defenses to Claims of Illegal Discrimination) Job relatedness Bona fide occupational qualification (BFOQ) Seniority Business necessity

Questions on Equal Employment Laws  Pregnancy Discrimination Act of 1978 Who does this law protect? What protections does it offer?  Sexual harassment What are the two types of sexual harassment? Describe each. How should an employer handle a sexual harassment claim?

Questions on Equal Employment Law  Civil Rights Act of 1991 What major changes were made to the 1964 Act?  ___________________  Executive Order What was the purpose of this order?