External Environment Economic forces Global competition Technology and re-engineering Education crisis Demographic trends Government regulation

Importance of the Legal Environment Doing the right thing Responsibilities of HR and Legal Departments EEO and Affirmative Action

Laws Affecting Discriminatory Practices Early laws- 1866 Civil Rights Law & 1871 Federal laws Equal pay act of 1963 - Equal pay for equal work Title VII of 1964 Civil Rights Act - Prohibits discrimination in employment on the basis of race, religion, color, sex, or national origin

Illegal Discrimination Disparate Impact -- Intentional discrimination which occurs when individuals are treated differently because of membership in a protected class Adverse Impact -- Unintentional discrimination. This occurs when the equal application of an employment standard has a negative effect on on or more protected classes.

Evidence for Disparate Treatment Prima Facie Evidence 1. Person is a member of a protected class. 2. Person applied for job for which he/she is qualified. 3. Person is rejected,. 4. Organization continues to seek other applicants with similar qualifications

Data for Prima Facie Cases Hiring Data: The percent of minorities hired to the percent of majorities hired Ex. Minorities hired = 50, Minority applicants =100, Percent hired = 50 Majorities hired = 75, Majority applicants = 100, Percent hired =75. Ratio of minorities to majorities = 50/75 This is a ratio of actual impact.

Data for Prima Facie Cases Labor Market Data: This is a comparison of potential impact. It compares percent of potentially hirable minorities to the percent of potentially hirable majorities Ex. 5,000 qualified minorities/10,000 all minorities in labor market (50%) compared to 20,000 qualified majorities/25,000 all minorities in labor market (80%) {50/80}

Data for Prima Facie Cases Population and Company Data -- A comparison of the workforce to the population. 50 minorities in the company workforce/500 in total company workforce (10%) compared to 15,000 minorities in local population of 60,000 (25%) [10/25]. This ratio says nothing about abilities.

The Four-Fifths Rule This rule states that the hiring rate for protected classes which is less than 80% of unprotected classes is evidence of adverse impact. Ex. 50 % of all white males who apply are hired. Then by the four-fifths rule 40% of any protected class needs to be hired to avoid charges of adverse impact. (.50 X .80 = .40). If only 25% of the black males who apply are hired, then there is prima facie evidence of adverse impact.

Defense of Discrimination Bona Fide Occupational Qualification Job relatedness Seniority

Backwards & Forwards Summing up: We began by examining the external environment that affects HRM functions. Then we focused specifically on the legal environment; distinguishing between EEO and affirmative action, detailing Title 7 of the 1964 Civil Rights Act, considering disparate and adverse impact, the 4/5 rule and defense of discrimination. Next time: We continue our legal studies with the Civil Rights Act of 1991, several executive orders and selected cases and principles.