1. The Hospitality Manager’s Legal Challenges
CHAPTER 2
The Hospitality Manager’s Legal Challenges
Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved

2. - Herman Cain, Former CEO and President
INTRODUCTION
I can still remember the separate water fountains and segregated buses as a young boy growing up in Atlanta in the 1950’s…The Civil Rights Act of 1964 was enacted to end this discrimination and begin
to restore the full rights of citizenship for all Americans.
- Herman Cain, Former CEO and President
The National Restaurant Association
Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved

3. TALES FROM THE FIELD Who owns your recipes?
How can an employee learn about his or her options if a manager or an owner refuses to release the employee’s final pay check?
When are your recipes yours, and when may ownership have to be shared?
Will this action on the part of this owner effect the operation’s reputation as a good place to work?
Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved

4. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved
CHAPTER OVERVIEW
Employment law and the EEOC
Title VII of the 1964 Civil Rights Act
The ADA
Age Discrimination in Employment Act
Immigration Reform and Control Act
Equal Pay Act
Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved

5. Title VII 1964 Civil Rights Act
Prohibits employment discrimination
based upon the following:
Sex
Race
Color
Religion
National Origin
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6. EMPLOYMENT-RELATED MATTERS
Examples include:
Creating job descriptions
Placing help-wanted ads
Conducting job interviews
Giving pay raises
Awarding promotions
Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved

7. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved
EEOC HAS JURISDICTION
U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
Federal agency created to provide oversight and coordination of Title VII as well as other federal equal employment opportunity laws.
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8. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved
SEXUAL HARASSMENT
A form of sex discrimination and therefore illegal under Title VII.
Unwelcome sexual advances
Requests for sexual favors
Verbal or physical conduct of a sexual nature
Activities that create an intimidating, hostile, or offensive working environment
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9. TYPES OF SEXUAL HARASSMENT
Harassment can be male-female, or same sex
Quid Pro Quo
– When a manager harasses a subordinate
Hostile Environment Harassment
- Co-worker, or even a guest can be the harasser
Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved

10. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved
MANAGEMENT MUST…
Create a well-written policy
Provide thorough and ongoing training
Ask employees to sign the policy
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11. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved
STATE AND LOCAL LAWS
Could be more strict than Title VII and could include
more protected classes. When this is the case, the
stricter law must be followed…
Marital status
Disability status
Sexual orientation
Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved

12. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved
BFOQ
Bona Fide Occupational Qualification
Employers may claim BFOQ if hiring someone of a particular sex or age is a genuine business necessity.
BFOQ is not a valid argument for race discrimination.
Hooter’s Restaurant chain settled a $3.75 million dollar lawsuit when sued for sex discrimination.
Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved

13. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved
ADA
The Americans with Disabilities Act
Title I of the ADA covers areas of employment discrimination
EEOC has jurisdiction over Title I of the ADA
Illegal to discriminate against disabled individuals
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14. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved
DEFINE “DISABLED”
A disabled individual is someone who has a physical or
mental impairment that substantially limits one or more
major life activities:
People who use wheelchairs or walkers;
people who are speech, vision, or hearing-impaired;
people with mental retardation or emotional illness;
people with heart disease, cancer, diabetes, or AIDS;
people with drug or alcohol problems who are in supervised rehab…
Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved

15. REASONABLE ACCOMMODATION
An employer may have to provide a reasonable
accommodation that would allow a disabled applicant or
employee to perform his major job functions. Examples
include:
Minor changes in work duties, procedures, or schedules
Work areas or equipment may have to be modified
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16. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved
UNDUE HARDSHIP CLAIM
Employer may claim undue financial hardship
EEOC usually decides in these matters
Most reasonable accommodations cost less than $50, according to the EEOC
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17. AGE DISCRIMINATION IN EMPLOYMENT
Law passed in 1967
Prohibits illegal discrimination against people over 40
Eliminated rules requiring mandatory retirement age in many industries
EEOC has jurisdiction
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18. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved
EQUAL PAY ACT
Law passed in 1963
Equal wages for equal work
Jobs are “equal” when they require the same skill, effort, responsibility, and working conditions
Pay differences based upon seniority or upon a valid merit system are allowed
EEOC has oversight
Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved

19. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved
IRCA
Immigration Reform and Control Act
Requires employers to complete the FORM I-9
Current law is under scrutiny and debate in Washington, D.C.
Many see law as ineffective and are seeking changes
Law passed in 1986
Intent to control illegal immigration
$10,000 fine for knowingly hiring illegal immigrants
Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved

20. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved
SUMMARY
Title VII of the 1964 Civil Rights Act
Bona Fide Occupational Qualification
Sexual Harassment
Americans With Disabilities Act
Age Discrimination in Employment Act
Equal Pay Act
Immigration Reform and Control Act
FORM I-9
Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved