1. The Legal Environment: Equal Employment Opportunity and Safety
Chapter 3
The Legal Environment:
Equal Employment Opportunity and Safety
Chapter 3 presents an overview of the U.S. legal system, noting the different legislative bodies, regulatory agencies, and judicial bodies that determine the legality of certain HRM practices. It discusses the major laws and executive orders that govern these practices. The legal environment, particularly the laws affecting the management of people, is one of several environmental factors affect an organization’s HRM function.
Managers often want a list of “dos and don’ts” that will keep them out of legal trouble. They rely on rules such as “Don’t ever ask a female applicant if she is married” without understanding the “why” behind these rules. Clearly, certain practices are illegal or inadvisable, and this chapter will provide valuable tips for avoiding discrimination lawsuits. However, such lists are not compatible with a strategic approach to HRM and are simply mechanical reactions to the situations. Our goal is to provide an understanding of how the legislative, regulatory, and judicial systems work to define equal employment opportunity law to be better prepared to manage people within the limits imposed by the legal system. Doing so effectively is a source of competitive advantage. Doing so ineffectively results in competitive disadvantage. Rather than viewing the legal system as a constraint, firms that embrace the concept of diversity can often find that they are able to leverage the differences among people as a tremendous competitive tool.
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. Learning Objectives
Identify the three branches of government and the role each plays in influencing HRM legal environment.
List major federal laws that require equal employment opportunity (EEO) and protections provided by each of these laws.
Discuss roles, responsibilities, and requirements of the federal agencies responsible for EEO laws.
Identify three theories of discrimination under Title VII of the Civil Rights Act and apply these theories to different discrimination situations.
After reading Chapter 3, you should be able to:
Identify the three branches of government and the role each plays in influencing the legal environment of HRM.
List the major federal laws that require equal employment opportunity and the protections provided by each of these laws.
Discuss the roles, responsibilities, and requirements of the federal agencies responsible for enforcing equal employment opportunity laws.
Identify the four theories of discrimination under Title VII of the Civil Rights Act and apply these theories to different discrimination situations.
3-2

3. Learning Objectives, cont.
Discuss legal issues involved with preferential treatment programs.
Identify behavior that constitutes sexual harassment and list things than an organization can do to eliminate or minimize it.
Identify major provisions of the Occupational Safety and Health Act (OSHA) (1970) and rights of employees guaranteed by this act.
And you should be able to:
6. Discuss the legal issues involved with preferential treatment programs.
7. Identify behavior that constitutes sexual harassment and list things an organization can do to eliminate or minimize it.
8. Identify the major provisions of the Occupational Safety and Health Act (1970) and the rights of employees that are guaranteed by this act.
3-3

4. U.S. Legal System 3 Branches
Legislative
Branch
Executive
Branch
Judicial
Branch 3
Branches
The U.S. Constitution sets forth the foundation of our system. It established three major governing bodies: the legislative, executive, and judicial branches.

5. House of Representatives
Legislative Branch
Legislative
Branch
Senate
House of Representatives
The legislative branch of the federal government consists of the House of Representatives and the Senate. These bodies enact laws that govern many HR activities.

6. Executive Branch President Regulatory Agencies
The executive branch consists of the President of the United States and regulatory agencies the president oversees. Although the legislative branch passes the laws, the executive branch affects these laws in many ways.
First, the president can propose bills to Congress that, if passed, would become laws.
Second, the president has the power to veto any law passed by Congress, thus ensuring that few laws are passed without presidential approval—which allows the president to influence how laws are written.
Third, the regulatory agencies, under the authority of the president, have responsibility for enforcing the laws. Thus, a president can influence what types of violations are pursued. Fourth, the president can issue executive orders, which sometimes regulate the activities of organizations that have contracts with the federal government.
Finally, the president appoints all the judges in the federal judicial system, subject to approval from the legislative branch. This affects the interpretation of many laws.

7. Supreme Court U.S. Courts of Appeals Judicial Branch
U.S. District Courts and quasi-judicial administrative agencies
U.S. Courts of Appeals
Supreme Court
The judicial branch consists of the federal court system, which is made up of three levels. The first level consists of the U.S. District Courts and quasi-judicial administrative agencies. The district courts hear cases involving alleged violations of federal laws. Quasi-judicial agencies, such as the National Labor Relations Board (or NLRB, which is actually an arm of the executive branch, but serves a judicial function), hear cases regarding their particular jurisdictions (in the NLRB’s case, disputes between unions and management). If neither party to a suit is satisfied with the decision of the court at this level, the parties can appeal the decision to the U.S. Courts of Appeals. These courts were originally set up to ease the Supreme Court’s caseload, so appeals generally go from the federal trial level to one of the 13 appellate courts before they can be heard by the highest level, the Supreme Court. The Supreme Court must grant certiorari before hearing an appealed case. However, this is not usually granted unless two appellate courts have come to differing decisions on the same point of law or if the case deals with an important interpretation of constitutional law. The Supreme Court serves as the court of final appeal. Decisions made by the Supreme Court are binding; they can be overturned only through legislation.

8. Equal Employment Opportunity (EEO)
EEO–the government's attempt to ensure that all individuals have an equal chance for employment, regardless of race, color, religion, sex or national origin.
Constitutional Amendments:
13th Amendment - abolished slavery
14th Amendment - provides equal protection for all citizens and requires due process in state action.
Equal employment opportunity refers to the government's attempt to ensure that all individuals have an equal chance for employment, regardless of race, color, religion, sex, or national origin (see Table 3.1 in the text for a summary of EEO laws).
Constitutional Amendments:
The Thirteenth Amendment of the Constitution abolished slavery in the United States.
The Fourteenth Amendment forbids the state to take life, liberty, or property without due process of law and prevents the states from denying the equal protections of the law.
3-8

9. Congressional Legislation
Civil Rights Acts (1866 and 1871)
Equal Pay Act of 1963
Title VII of the Civil Rights Act of 1964
Age Discrimination in Employment Act of 1967
Rehabilitation Act of 1973
The Thirteenth Amendment eradicated slavery in the United States, and the Reconstruction Civil Rights Acts were attempts to further this goal. The Civil Rights Act passed in 1866 was later broken into two statutes. Section 1982 granted all persons the same property rights as white citizens. Section 1981 granted other rights, including the right to enter into and enforce contracts. Courts have interpreted Section 1981 as granting individuals the right to make and enforce employment contracts. Equal Pay Act of requires that men and women in the same organization who are doing equal work must be paid equally. Covers employers engaged in interstate commerce
Title VII of the Civil Rights Act of makes it illegal for an employer to "fail or refuse to hire or discharge any individual because of the individual's race, color, religion, sex, or national origin. Title VII states that it is illegal for an employer to “(1) fail or refuse to hire or discharge any individual, or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment because of such individual’s race, color, religion, sex, or national origin, or (2) to limit, segregate, or classify his employees or applicants for employment in any way that would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee because of such individual’s race, color, religion, sex, or national origin.” The act applies to organizations with 15 or more employees working 20 or more weeks a year that are involved in interstate commerce, as well as state and local governments, employment agencies, and labor organizations.
Age Discrimination in Employment Act of prohibits discrimination against employees over the age of 40. Covers employers with 15 or more employees working 20 or more weeks per year; labor unions; employment agencies; federal government. Vocational Rehabilitation Act of covers federal contractors and requires them to engage in affirmative action for disabled individuals.
3-9

10. Congressional Legislation
Vietnam Era Veteran’s Readjustment Act of 1974
Pregnancy Discrimination Act
Civil Rights Act of 1991
Americans with Disabilities Act of 1990
Vietnam Era Veteran’s Readjustment Act of requires federal contractors to take affirmative action toward employing Vietnam veterans.
Pregnancy Discrimination Act-An amendment to Title VII of the Civil Rights Act, it prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions: i.e., it is a form of unlawful sex discrimination. In addition, regarding pregnancy and maternity leave, employers may not single out pregnancy-related conditions for special procedures to determine an employee’s ability to work, and if an employee is temporarily unable to perform during her pregnancy, the employer must treat her the same as any temporarily disabled employees. The act also requires that any health insurance must cover expenses for pregnancy-related conditions on the same basis as costs for other medical conditions. Pregnancy-related benefits cannot be limited to married employees, and if an employer provides any benefits to workers on leave, they must also provide the same benefits for those on leave for pregnancy-related conditions. It covers employers with more than 15 employees.
Civil Rights Act of allows compensatory and punitive damages when discrimination has been intentional or reckless.
Americans with Disabilities Act of 1990-protects individuals with disabilities from being discriminated against in the workplace by prohibiting discrimination in all employment practices. Requires that "reasonable accommodations" be made as long as they do not present an "undue burden" upon the employer.
3-10

11. Disability
According to EEOC, a disability is a physical or mental impairment that
“substantially limits one or more major life activity; a record or past history of such an impairment; and/or being ‘regarded as’ having a disability by an employer whether you have one or not, usually in terms or hiring, firing or demotion
A disability is defined as a physical or mental impairment that “substantially limits one or more major life activity; a record or past history of such an impairment; and/or being ‘regarded as’ having a disability by an employer whether you have one or not, usually in terms or hiring, firing or demotion.” In essence, a person is considered disabled not only if he or she cannot DO something but just because he or she has a medical condition whether or not it impairs functioning.
3-11

12. Executive Orders Executive Order 11246 - Prohibits government
contactors from discrimination
Executive Order
government employment
policies based on merit
and fitness
Executive Orders are directives issued and amended unilaterally by the president. Two affect HRM practice:
Executive Order Requires affirmative action in hiring women and minorities It covers Federal contractors and subcontractors with contracts greater than $10,000
Executive Order requires the federal government to base all its employment policies on merit and fitness and specifies that race, color, sex, religion, and national origin should not be considered.

13. Opportunity Commission (EEOC) Office of Federal Contract
Enforcement of EEO
Two agencies responsible for enforcement of these laws and executive orders:
Equal Employment
Opportunity Commission (EEOC)
Office of Federal Contract
Compliance Programs
Equal employment opportunity (EEO) refers to the government’s attempt to ensure that all individuals have an equal chance for employment, regardless of race, color, religion, sex, age, disability, or national origin.
Two agencies responsible for the enforcement of these laws and executive orders:
Equal Employment Opportunity Commission (EEOC) is a division of the Department of Justice responsible for enforcing most of the EEO laws.
The Office of Federal Contract Compliance Programs (OFCCP) is responsible for enforcing executive orders that cover companies that have federal government contracts.
3-13

14. Equal Employment Opportunity Commission
3 major responsibilities of EEOC:
Investigate and resolve discrimination complaints
Gather information
Issue guidelines
Lilly Ledbetter Fair Pay Act
EEOC has three major responsibilities:
1. Investigation and Resolution—After filing a complaint, EEOC has 60 days to investigate. Dismissal or reconciliation are the two possible outcomes. The complainant may sue in federal court if not satisfied.
2. Information Gathering—EEOC monitors hiring practices by reviewing EEO‑1 reports filed annually by firms. EEOC also plays a role in monitoring the hiring practices of organizations. Each year organizations with 100 or more employees must file a report (EEO-1) with EEOC that provides number of women and minorities employed in nine different job categories. EEOC analyzes these reports to identify patterns of discrimination that can then be attacked through class-action suits.
Issuance of Guidelines—EEOC determines and issues guidelines that help employers comply with law. If EEOC cannot come to an agreement with the organization, it has two options. First, it can issue a “right to sue” letter to the alleged victim, which certifies that the agency has investigated and found validity in the victim’s allegations. Second, although less likely, EEOC may aid the alleged victim in bringing suit in federal court.
Lilly Ledbetter Fair Pay Act- Congress passed the act specifying that an “illegal act” occurs when (1) a discriminatory compensation decision is adopted; (2) an employee becomes subject to the decision; or (3) an employee is affected by it application, including each time compensation is paid.
3-14

15. Office of Federal Contract Compliance Programs (OFCCP)
3 Components Of
OFCCP
Utilization analysis
Goals and timetables
Action steps
There are three components of OFCCP:
Utilization analysis compares the race, sex, and ethnic composition of the employer's workforce with that of the available labor supply.
The employer must develop specific goals and timetables for achieving balance in the workforce to specify percentage of women and minorities that an employer seeks, and date by which that percentage is to be attained.
Employers must develop a list of action steps, which are the written affirmative plan that specifies what an employer plans to do to reduce underutilization of protected groups.
OFCCP annually audits government contractors to ensure that they actively pursue the goals in their plans. These audits consist of (1) examining the company’s affirmative action plan and (2) conducting on-site visits to examine how individual employees perceive the company’s affirmative action policies. If the OFCCP finds that the contractors or subcontractors are not complying with the executive order, then its representatives may notify the EEOC (if there is evidence that Title VII has been violated), advise the Department of Justice to institute criminal proceedings, request that the Secretary of Labor cancel or suspend any current contracts, and forbid the firm from bidding on future contracts. This last penalty, called debarment, is the OFCCP’s most potent weapon.
3-15

16. 3 Types of Discrimination
Disparate
Impact
Disparate
Treatment
3 Types of
Discrimination
Reasonable
Accommodation
Legal scholars have identified three theories of discrimination: disparate treatment, disparate impact, and reasonable accommodation. A comparison of the theories of discrimination is given in Table 3.3.

17. Disparate Treatment
Disparate treatment exists when individuals in similar situations are treated differently based upon race, color, religion, sex, national origin, age, or disability status.
Bona fide occupational qualifications (BFOQ) is a job qualification based on race, sex, religion, etc. that an employer asserts is a necessary qualification for the job.
UAW v. Johnson Controls, Inc.
McDonnell Douglas Corp. v. Green.
Disparate treatment exists when individuals in similar situations are treated differently based upon race, color, religion, sex, national origin, age, or disability status. Whenever individuals are treated differently because of their race, sex, or the like, and there is an actual intent to treat them differently; the plaintiff must prove that there was a discriminatory motive—that is, that the employer intended to discriminate.
Bona fide occupational qualifications (BFOQ) - Characteristic that is necessary, rather than preferred, for a job.
UAW v. Johnson Controls, Inc., illustrates the difficulty in using a BFOQ as a defense. Johnson Controls, a manufacturer of car batteries, had instituted a “fetal protection” policy that excluded women of childbearing age from a number of jobs in which they would be exposed to lead, which can cause birth defects in children. The company argued that sex was a BFOQ essential to maintaining a safe workplace. The Supreme Court did not uphold the company’s policy, arguing that BFOQs are limited to policies that are directly related to a worker’s ability to do the job.
McDonnell Douglas Corp. v. Green delineated the four criteria for a prima facie case of discrimination.
3-17

18. Burden of Proof
Plaintiff has the burden of proving that the defendant committed an illegal act; the idea of a “prima facie” case. Plaintiff meets prima facie burden by showing four things:
1. Plaintiff belongs to a protected group.
2. Plaintiff applied for and was qualified for the job.
3. Despite possessing qualifications, plaintiff was rejected.
4. After plaintiff was rejected, the position remained open and the employer continued to seek applicants with similar qualifications, or the position was filled by someone with similar qualifications.
Although these four elements may seem easy to prove, What the court is trying to do is rule out the most obvious reasons for rejecting the plaintiff’s claim (for example, the plaintiff did not apply or was not qualified, or the position was already filled or had been eliminated). If these alternative explanations are ruled out, the court assumes that the hiring decision was based on a discriminatory motive. Once the plaintiff has made the prima facie case for discrimination, the burden shifts to the defendant. The burden is different depending on whether the prima facie case presents only circumstantial evidence (there is no direct evidence of discrimination such as a formal policy to discriminate, but rather discriminatory intent must be inferred) or direct evidence (a formal policy of discrimination for some perceived legitimate reason). In cases of circumstantial evidence, the defendant simply must produce a legitimate, nondiscriminatory reason, such as that, although the plaintiff was qualified, the individual hired was more qualified.
3-18

19. Disparate Impact
Disparate impact occurs when a neutral employment practice disproportionately excludes a protected group from employment opportunities.
Four-fifths rule
Standard deviation rule
Wards Cove Packing Co. v. Atonio
Griggs v. Duke Power
Disparate impact occurs when a facially neutral employment practice disproportionately excludes a protected group from employment opportunities.
Four-fifths rule - a test has disparate impact if the hiring rate for the minority group is less than four-fifths (80 percent) of the hiring rate for the majority group.
Standard deviation rule - uses actual probability distributions to determine adverse impact.
-- The Wards Cove Packing Co. v. Antonio case involved a statistical analysis of utilization rates in cannery and noncannery jobs (pay rates for the types of jobs were quite different).
-- In Griggs v. Duke Power, it was shown that the employer required either a high school diploma or passing scores on two nationally developed tests. However, the company had not studied the relationship of these selection devices to ability to do the job. Employees already on the job without high school degrees were performing satisfactorily. Thus, Duke Power lost the case.
3-19

20. Pattern and Practice
Plaintiffs attempt to show three things in showing class action pattern and practice lawsuits:
1. Statistical disparities between the composition of some group within the company compared to some other relevant group
2. Plaintiff tries to show individual acts of intentional discrimination that suggest that the statistical disparity is a function of the larger culture.
3. Plaintiff usually tries to make the case that the promotion and/or pay procedures leave too much discretion to managers, providing the avenue through which their unconscious biases can play a part.
Plaintiffs attempt to show three things in showing class action pattern and practice lawsuits:
1. Statistical disparities between the composition of some group within the company compared to some other relevant group
2. Plaintiff tries to show individual acts of intentional discrimination that suggest that the statistical disparity is a function of the larger culture.
3. Plaintiff usually tries to make the case that the promotion and/or pay procedures leave too much discretion to managers, providing the avenue through which their unconscious biases can play a part.
Plaintiffs attempt to show three things in showing class action pattern and practice lawsuits:
Statistical disparities between the composition of some group within the company compared to some other relevant group
Plaintiff tries to show individual acts of intentional discrimination that suggest that the statistical disparity is a function of the larger culture.
Plaintiff usually tries to make the case that the promotion and/or pay procedures leave too much discretion to managers, providing the avenue through which their unconscious biases can play a part.
3-20

21. Reasonable Accommodation
Reasonable Accommodation - places a special obligation on an employer to affirmatively accommodate an individual’s disability or religion.
Religion and Accommodation
Disability and Accommodation
readily accessible facilities
job restructuring
reassignment
alternative testing formats, readers, additional time, interpreters, or reading assistance technology
own accommodation etc.
Reasonable Accommodation - places a special obligation on an employer to affirmatively do something to accommodate an individual’s disability or religion.
Religion and Accommodation - Individuals who hold strong religious beliefs find that some observations and practices of their religion conflict with work duties. Although Title VII forbids discrimination on the basis of religion just like race or sex, religion also receives special treatment requiring employers to exercise an affirmative duty to accommodate individuals’ religious beliefs and practices. In cases of religious discrimination, an employee’s burden is to demonstrate that he or she has a legitimate religious belief and provided the employer with notice of the need to accommodate the religious practice, and that adverse consequences occurred due to the employer’s failure to accommodate. In such cases, the employer’s major defense is to assert that to accommodate the employee would require an undue hardship. Although an employer is required to make a reasonable accommodation, it need not be the one that is offered by the employee.
Reasonable Accommodation Making facilities readily accessible to and usable by individuals with disabilities. Disability and Accommodation - Employers are not only to refrain from discrimination (ADA) but they are also obligated to take affirmative steps to accommodate individuals who are protected under the act. Under disability claims, the plaintiff must show that she or he is a qualified applicant with a disability and that adverse action was taken by a covered entity. The employer’s defense then depends on whether the decision was made without regard to the disability or in light of the disability. Examples of reasonable accommodation with regard to disabilities include readily accessible facilities, job restructuring, reassignment, alternative testing formats, readers, additional time, interpreters, or reading assistance technology own accommodation etc
3-21

22. Retaliation for Participation and Opposition
Title VII states that employers cannot retaliate against employees for either "opposing" a perceived illegal employment practice or "participating in a proceeding” related to an alleged illegal employment practice.
Employees do not have an unlimited right to talk about how racist or sexist their employers are.
Title VII states that employers cannot retaliate against employees for either "opposing" a perceived illegal employment practice or "participating in a proceeding” related to an alleged illegal employment practice. However, employees do not have an unlimited right to talk about how racist or sexist their employers are. The courts tend to frown on employees whose activities result in a poor public image for the company unless those employees attempted to use the organization’s internal channels.
Opposition refers to expressing to someone through proper channels that you believe that an illegal employment act has taken place or is taking place. Participation refers to actually testifying in an investigation, hearing, or court proceeding regarding an illegal employment act. Clearly, the purpose of this provision is to protect employees from employers’ threats and other forms of intimidation aimed at discouraging the employees from bringing to light acts they believe to be illegal.
3-22

23. Diversity and EEO ISSUES
Sexual Harassment
Affirmative Action
and
Reverse Discrimination
Organizational demography is changing, and therefore issues regarding diversity are increasingly important. The important issue are: sexual harassment, affirmative action and reverse discrimination, and outcomes of American’s with Disabilities Act. The following slides explore these issues further.
Outcomes of Americans
with Disabilities Act
3-23

24. Sexual Harassment
Sexual harassment - unwelcome sexual advances, requests for sexual favors, and other verbal or physical contact of a sexual nature constitute sexual harassment when
1. Submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment,
2. Submission to or rejection of such conduct by an individual is used as the basis of employment decisions affecting such individual, or
3. Such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment.
The EEOC definition of sexual harassment -unwelcome sexual advances, requests for sexual favors, and other verbal or physical contact of a sexual nature constitute sexual harassment when
1. Submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment,
2. Submission to or rejection of such conduct by an individual is used as the basis of employment decisions affecting such individual, or
3. Such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment.
3-24

25. Hostile Working Environment
Sexual Harassment
Quid Pro Quo
Bundy v. Jackson
Hostile Working Environment
Quid pro quo harassment occurs when some type of benefit or punishment is made contingent upon the employee submitting to sexual advances.
--The Bundy v. Jackson case facts showed that the plaintiff repeatedly received sexual propositions from her fellow employees and supervisor. She rejected these advances and was eventually passed over for promotion without reason.
A hostile working environment occurs when someone's behavior in the workplace creates an environment that makes it difficult for someone of a particular sex to work.
3-25

26. Sexual Harassment 3 conditions for sexual harassment cases:
Plaintiff cannot have "invited or incited" the advances
Harassment must have been severe enough to alter terms, conditions or privileges of employment
Court must determine liability of the organization for actions of its employees
Preventative steps include development of a policy statement, training, a reporting mechanism and disciplinary policy.
Three critical conditions for sexual harassment cases:
The plaintiff cannot have "invited or incited" the advances
Harassment must have been severe
The court must determine the liability of the organization for actions of its employees
Preventative steps for firms include development of a policy statement, training in inappropriate behaviors, development of a reporting mechanism, and disciplinary policy.
3-26

27. 4 Steps to Ensure a Workplace Free of SH
Policy Statement
Training
Reporting mechanism
Prompt disciplinary action
To ensure a workplace free from sexual harassment, organizations can follow some important steps. First, the organization can develop a policy statement that makes it very clear that sexual harassment will not be tolerated in the workplace. Second, all employees, new and old, can be trained to identify inappropriate workplace behavior. Third, the organization can develop a mechanism for reporting sexual harassment that encourages people to speak out. Fourth, management can prepare to take prompt disciplinary action against those who commit sexual harassment as well as appropriate action to protect the victims of sexual harassment.
3-27

28. Affirmative Action and Reverse Discrimination
Affirmative Action was conceived as a way of taking extra effort to attract and retain minority employees.
Perceived as imposing quotas, but inaccurate
Entire debate over affirmative action continues to evoke attention.
Affirmative Action was conceived of as a way of taking extra effort to attract and retain minority employees.
Imposed quota programs are negotiated with the EEOC and hold a certain number of positions for minorities or women. The entire debate over affirmative action continues to evoke attention. Many people consider quotas or preferential treatment as reverse discrimination. Although most individuals support the idea of diversity, few argue for the kinds of quotas that have to some extent resulted from the present legal climate.
3-28

29. Americans with Disabilities Act (ADA)
Under ADA, a firm must make "reasonable accommodation” to a physically or mentally disabled individual unless doing so would impose "undue hardship.”
Consequences of ADA:
Increased litigation
Cases being filed do not reflect Congressional intent
Act was passed to protect people with major disabilities
The law has not resulted in a major increase in the proportion of people with disabilities who are working.
Under ADA, a firm must make “reasonable accommodation” to a physically or mentally disabled individual unless doing so would impose “undue hardship.” Consequences of this act:
There has been increased litigation.
The kinds of cases being filed do not reflect Congressional intent.
The act was passed to protect people with major disabilities; however, major disabilities account for less than 4 percent of claims. The law has not resulted in a major increase in the proportion of people with disabilities who are working. The debate continues regarding the effectiveness of the ADA.
3-29

30. Employee Safety
Employee safety is regulated by both federal and state governments.
BP refinery in Texas City, Texas
Occupational Safety and Health Act (OSHA)
General Duty Clause
Employee safety is regulated by both the federal and state governments. employers need to go well beyond the letter of the law and embrace its spirit. In March 2005, officials at the BP refinery in Texas City, Texas, were aware of the fact that some repairs needed to be done on some of the equipment in an octane-boosting processing unit. On March 23, knowing that some of the key alarms were not working, managers authorized a start-up of the unit. The startup resulted in the deadliest petrochemical accident in 15 years, killing 15 people and injuring an additional
Occupational Safety and Health Act (OSHA) authorizes the federal government to establish and enforce occupational safety and health standards for all places of employment engaging in interstate commerce.
--The General duty clause of OSHA states that an employer has an overall obligation to furnish employees with a place of employment free from recognized hazards.
3-30

31. Employee Rights under OSHA
1. Request an inspection.
2. Have a representative present at inspection.
3. Have dangerous substances identified.
4. Be promptly informed about exposure
to hazards and given access to
accurate records regarding exposures.
5. Have employer violations posted at work-site.
Under OSHA, employees have a right to:
1. Request an inspection.
2. Have a representative present at an inspection.
3. Have dangerous substances identified.
4. Be promptly informed about exposure to hazards and be given access to accurate records regarding exposures.
5. Have employer violations posted at the work-site.
3-31

32. OSHA Inspections Citations and Penalties
OSHA inspections are conducted by compliance officers, specially trained Department of Labor agents.
Violation results in a citation to the employer.
Criminal and civil penalties
OSHA is responsible for inspecting businesses, applying safety and health standards, and levying fines for violations. OSHA regulations prohibit notifying employers of inspections in advance. OSHA inspections are conducted by specially trained agents of the Department of Labor called compliance officers. If compliance officers believe that a violation has occurred, they issue a citation to the employer specifying the practice or situation that violates the act. Criminal and civil penalties may be assessed for willful violations that kill an employee. OSHA has been unquestionably successful in raising the level of awareness of occupational safety, yet legislation alone cannot solve all the problems of work site safety.
3-32

33. Safety Awareness Programs
Safety Awareness Programs attempt to instill symbolic and substantive changes to a safety program.
3 Components of a Safety Awareness Program:
Identify and Communicate Job Hazards
Job hazard analysis technique
Technic of Operations Review (TOR)
Reinforce Safe Practices
Promote Safety Internationally
Safety Awareness Programs attempt to instill symbolic and substantive changes to a safety program. There are three primary components of a safety awareness program:
--Identifying and Communicating Job Hazards
The job hazard analysis technique breaks jobs down into basic elements that are then rated for their potential for harm.
Technic of Operations Review (TOR) focuses on past accidents and their causes.
--Reinforcing Safe Practices
--Promoting Safety Internationally
3-33

34. Summary
One of HRM’s major challenges is the legal constraints imposed by the government.
HR and line managers need to understand legal requirements and prohibitions to manage in ways that are financially and ethically sound, and in so doing create a competitive advantage.
Viewing employees as a source of competitive advantage results in dealing with them in ways that are ethical and legal as well as providing them with a safe workplace. An organization’s legal environment—especially the laws regarding equal employment opportunity and safety—has a particularly strong effect on its HRM function. HRM is concerned with the management of people, and government is concerned with protecting individuals. One of HRM’s major challenges is within the legal constraints imposed by the government. Given the multimillion-dollar settlements resulting from violations of EEO laws (and the moral requirement to treat people fairly regardless of their sex or race) as well as the penalties for violating OSHA, HR and line managers need to understand legal requirements and prohibitions in order to manage their businesses in ways that are sound, both financially and ethically. Organizations that do so effectively have a competitive advantage.
3-34