Human Resource Management MBA (2.5) 2nd Semester Equal Employment Opportunity & Legal Environment Lectures 4,5,6 Course Lecturer: Farhan Mir

Introduction Equal employment opportunity (EEO) has implications for almost every activity in HRM HR officials and managers in every function of the organization are involved EEO programs are implemented to: Prevent employment discrimination in the workplace Take remedial action to offset employment discrimination

Introduction Equal Employment Opportunity An attempt to ensure that all individuals have an equal opportunity for employment, regardless of race, color, religion, sex, age, disability or national origin US governments have used constitutional amendments, legislation and executive orders to ensure this concepts positively adopted and practiced in businesses

How Did EEO Emerge? Three main factors that led to the development of EEO: Changes in societal values The economic status of women and minorities The emerging role of government regulation

Problems at Boeing Boeing Introduction Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined customers in 145 countries around the world Famous for it’s 737 and 747 aircrafts Boeing has a long tradition of aerospace leadership and innovation Headquartered in Chicago, Illinois, U.S.A., Boeing employs more than 155,000 people in some 67 countries

What is Discrimination?

Common Examples of Discrimination

Discrimination and the Courts Plaintiff (Employee) Must establish a “prima facie” case Plaintiff must present evidence which makes the employer’s actions appear discriminatory Defendant (Employer) Must present a rebuttal to “prima facie” case Defendant must present evidence that justifies the fairness of its actions

Problem at Boeing The Problem Although facing stiffer competition from outside by companies like Airbus but at this moment we are discussing “Internal Problem based on ethics Boeing has faced many discrimination complaints For Example: 38 females engineers filed a discrimination case against company in year 2000 The case suggested that woman were paid less as compared to men especially at start of their jobs “Business Week” investigated into the matter and found that this differences in pay was not a new phenomenon rather was evident in past Salary Analysis in 1999 showed that Boeing needed to allocated $30 million to eliminate gender-based pay differences but rather allocated $10 million only The Lawsuit (case) was based on 28000 potential plaintiffs and liability of $1 Billion Boeing people themselves believe that something generally not right about the way they are doing it

What is Discrimination? In general terms, discrimination is any practice that makes distinctions between individuals or groups that disadvantage some and advantage others. Different treatment of others based solely on their membership in a socially distinct group or category, such as race, ethnicity, sex, religion, age, or disability

Equal Employment Opportunity Laws in US Title VII of the 1964 Civil Rights Act Pregnancy Discrimination Act of 1978 Civil Rights Act of 1991 Equal Pay Act of 1963 Age Discrimination in Employment Act of 1967 (ADEA) Americans with Disabilities Act of 1990 (ADA)

Title VII of the Civil Rights Act of 1964 Prohibits discrimination against employees on the basis of (protected categories): race color religion sex national origin Prohibits discrimination with regard to any employment condition

Title VII of the Civil Rights Act of 1964 (continued) Covered entities include: Private employers with 15 or more employees Labor organizations with 15 or more members Employment agencies Federal, state, and local government employers Exempt entities include: Private membership clubs Native American tribes

Discrimination Bona Fide Occupational Qualification Treatment (BFOQ) Disparate Impact Four-fifths Rule Retaliation Treatment Bona Fide Occupational Qualification (BFOQ) 9

Disparate Treatment Intentional discrimination Employers apply different standards or treatment to different groups of employees or applicants based upon a protected category

Disparate Impact Unintentional discrimination Occurs when a racially neutral employment practice has the effect of disproportionately excluding a group based upon a protected category

Four-Fifths Rule Used to evaluate whether disparate impact exists Discrimination typically occurs if the selection rate for one group is less than 80 percent (4/5) of the selection rate for another group

Bona Fide Occupational Qualification (BFOQ) (1 of 2) Title VII states that organizations may hire employees: based upon religion, sex, or national origin must be reasonably necessary to the normal operation of the particular business or enterprise

Retaliation Federal EEO laws prohibit retaliation against employees who: oppose discriminatory practices, or participate in a protected investigation, proceeding, or hearing Retaliation includes: termination denial of promotion or job benefits demotion, suspension, or threats

Sexual Harassment Considered a form of sex discrimination under Title VII of the Civil Rights Act of 1964 is actionable when it occurs between same as well as opposite sex individuals Forms of sexual harassment: Quid pro quo – exchange of sexual favors for job benefits Hostile work environment – creation of an offensive working environment Famous example of FBI (supposedly male dominant department: a certain image of it) Females have reported cases of sexual harassment and therefore are often retaliated

Pregnancy Discrimination Act of 1978 Amended Title VII to protect pregnant women from employment discrimination Prohibits employers from discrimination in providing employee benefits such as: vacation time sick leave health insurance Pregnancy to be treated on same basis as any other medical problem or disability

Civil Rights Act of 1991 Amends Title VII Allows plaintiffs to seek compensatory and punitive damages for intentional discrimination Allows plaintiffs to demand jury trial for intentional discrimination claims

Civil Rights Act of 1991 Prohibits adjusting test scores or using different cutoff scores on the basis of a protected category Extends the coverage of Title VII and the Americans with Disabilities Act to U.S. citizens employed by covered entities operating in foreign countries

Equal Pay Act of 1963 Established the concept of equal pay for equal work Prohibits wage differentials based on gender between men and women performing the same work in organizations

Age Discrimination in Employment Act of 1967 (ADEA) Protects individuals 40 years of age and older from employment discrimination based upon their age The act covers the actions of: private employers with 20 or more employees employment agencies labor organizations with at least 25 members federal, state, and local governments

Americans with Disabilities Act of 1990 (ADA) Prohibits discrimination against qualified individuals with disabilities on the basis of those disabilities in all aspects of employment private employers with 15 or more employees state and local government employers U.S. Congress Federal government employers and contractors are covered under the Rehabilitation Act of 1973

Americans with Disabilities Act of 1990 (ADA) Employers must make reasonable accommodations for the known disabilities of a qualified individual with a disability Qualified individual with a disability: can perform the essential functions of a job with or without reasonable accommodation

What Is a “Disability”? The Americans With Disabilities Act defines a disability as: A physical or mental impairment that substantially limits one or more of the major life activities. A record of such impairment. Being regarded as having such an impairment.

Americans with Disabilities Act of 1990 (ADA) Employers are not required to make disability accommodations if doing so would create undue hardship for the organization

Examples of Reasonable Accommodations under the ADA

Enforcing the Law Equal Employment Opportunity Commission (EEOC) Title VII Office of Federal Contract Compliance Programs (OFCCP) Executive Order 11246 The Courts interpret the laws governing EEO

Summary EEO programs are designed to eliminate bias in HRM programs The role of EEO and the law as a significant force in shaping HRM policies and programs is an accepted fact in society The law, executive orders, and court interpretations will continue to influence every phase of HRM programs and activities

Affirmative Action in Organizations Actions appropriate to overcome the effects of past or present practices, policies, or other barriers to equal employment opportunity The idea is to make sure that organization voluntarily establish goals and takes action to hire and move minorities and women upward in the organization

Summary EEO programs are designed to eliminate bias in HRM programs The role of EEO and the law as a significant force in shaping HRM policies and programs is an accepted fact in society The law, executive orders, and court interpretations will continue to influence every phase of HRM programs and activities