CHAPTER 7

EMPLOYMENT LAW

PowerPoint Presentation by Charlie Cook

Copyright 2002 South-Western. All rights reserved

Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws
Equal
Equal Pay
PayAct
Act (1963)
(1963)

Prohibits
Prohibitswage
wagediscrimination
discriminationbased
basedon
ongender
genderfor
forjobs
jobsthat
that
require
requireequal
equalskill,
skill,effort,
effort,and
andresponsibility
responsibilityand
andare
areperformed
performed
under
undersimilar
similarworking
workingconditions.
conditions.
Exceptions
Exceptionstotoequal
equalpay:
pay:
Bona
Bonafide
fideseniority
senioritysystems
systems
Quality
Qualityof
ofjob
jobperformance
performance(i.e.,
(i.e.,merit-based
merit-basedpay
paysystems)
systems)
Quantity
Quantityof
ofoutput
output(i.e.,
(i.e.,piece-rate
piece-ratepay
paysystems)
systems)
Factors
Factors(contingencies)
(contingencies)other
otherthan
thansex
sex(gender)
(gender)

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Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws
Civil
Civil Rights
RightsAct
Act (1964)
(1964)

Title
TitleVII
VIIprohibits
prohibitsdiscrimination
discriminationininemployment
employmentbased
basedon
on
race,
race,color,
color,religion,
religion,sex,
sex,and
andnational
nationalorigin.
origin.
Covers
Coversconditions
conditionsofofemployment:
employment:hiring,
hiring,firing,
firing,promotion,
promotion,
transfer,
transfer,compensation,
compensation,and
andadmission
admissiontototraining.
training.
Applies
Appliestotoall
allprivate
privateemployers
employerswith
with15
15orormore
moreemployees,
employees,
state
stateand
andlocal
localgovernments,
governments,educational
educationalinstitutions,
institutions,
employment
employmentagencies,
agencies,and
andunions.
unions.
Established
Establishedthe
theEqual
EqualEmployment
EmploymentOpportunity
OpportunityCommission
Commission
(EEOC)
(EEOC)totooversee
overseeand
andenforce
enforceTitle
TitleVII
VIIand
andall
allother
otherfederal
federal
labor
laborlaws.
laws.

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Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws
Age
Age Discrimination
DiscriminationAct
Act (1967)
(1967)

Prohibits
Prohibitsemployment
employmentdiscrimination
discriminationagainst
againstemployees
employeeswho
who
are
areage
age40
40ororolder.
older.
Prohibits
Prohibitsthe
thesetting
settingofofmandatory
mandatoryretirement
retirementages
agesexcept
exceptinin
cases
casesofofpublic
publicsafety
safety(e.g.,
(e.g.,airline
airlinepilots).
pilots).
Amended
Amended1990
1990by
byOlder
OlderWorkers
WorkersProtection
ProtectionAct
Actwhich
which
prohibits
prohibitsdiscrimination
discriminationininthe
theprovision
provisionofofbenefits
benefitsand
andthe
the
required
requiredsigning
signingofofage
agediscrimination
discriminationwaivers
waiversatatlayoff.
layoff.
Covers
Coversall
allemployers
employersincluding
includingthe
thefederal
federalgovernment.
government.

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Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws
Rehabilitation
RehabilitationAct
Act (1973)
(1973)

Prohibited
Prohibiteddiscrimination
discriminationby
byfederal
federal(but
(butnot
notprivate)
private)
contractors
contractorsagainst
againsthandicapped
handicappedapplicants
applicantsororemployees.
employees.
Definition
Definitionofofhandicapped
handicappedindividuals:
individuals:

Persons
Personswith
withphysical
physicalor
ormental
mentalimpairment
impairmentthat
thatsubstantially
substantially
limits
limitsone
oneor
ormore
moremajor
majorlife
lifeactivities.
activities.
Persons
Personswith
withaahistory
historyor
orrecord
recordof
ofsuch
suchimpairment.
impairment.
Persons
Personsregarded
regardedas
ashaving
havingsuch
suchan
animpairment.
impairment.

Handicapped
Handicappedindividuals
individualsmust
mustbe
beotherwise
otherwisequalified
qualifiedtoto
perform
perform(with
(withreasonable
reasonableaccommodation)
accommodation)the
theessential
essential
functions
functionsofofthe
thejob
job(e.g.,
(e.g.,no
noblind
blindbus
busdrivers).
drivers).
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Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws
Pregnancy
Pregnancy Discrimination
DiscriminationAct
Act (1978)
(1978)

Prohibits
Prohibitsemployers
employersfrom
fromdiscriminating
discriminatingagainst
againstpregnant
pregnant
employees
employeesby
byrequiring
requiringpregnancy
pregnancyleaves
leavesand
andthat
thatpregnancy
pregnancy
be
betreated
treatedas
asany
anyother
othermedical
medicaldisability.
disability.
Does
Doesnot
notrequire
requirereinstatement
reinstatementofofreturning
returningemployee
employeetoto
same
samejob.
job.
Does
Doesnot
notallow
allowemployer
employertotodetermine
determinedates
datesofofleave.
leave.
Employer
Employercannot
cannotrefuse
refusetotohire
hireororpromote
promoteon
onthe
thebasis
basisofof
pregnancy.
pregnancy.
Employer
Employercannot
cannotprovide
providehealth
healthplans
plansthat
thatdo
donot
notcover
cover
pregnancy.
pregnancy.

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Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws
American
AmericanWith
With Disabilities
DisabilitiesAct
Act (1990)
(1990)

Prohibits
Prohibitsall
allemployers
employerswith
with15
15orormore
moreemployees
employeesfrom
from
discriminating
discriminatingagainst
againsthandicapped
handicappedpersons.
persons.
The
Thecourts
courtshave
haveissued
issuedambiguous
ambiguousand
andconflicting
conflictingrulings
rulingson
on
medical
medicalconditions,major
conditions,majorlife
lifeactivities,
activities,and
andwhat
what
constitutes
constitutesaadisability.
disability.Decisions
Decisionsare
aremade
madeon
onaacase-bycase-bycase
casebasis.
basis.
Determination
Determinationofofreasonable
reasonableaccommodation:
accommodation:
Cost
Costof
ofaccommodation
accommodationand
andresources
resourcesof
ofemployer
employer
Nature
Natureof
ofthe
thejob
joband
andworkplace
workplacesafety
safetyissues
issues
Any
Anyrelevant
relevantcollective
collectivebargaining
bargainingprovisions
provisions

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Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws
Civil
Civil Rights
RightsAct
Act (1991)
(1991)

Extended
ExtendedTitle
TitleVII
VIIcoverage
coveragetotofederal
federalemployees.
employees.
Allows
Allowslitigants
litigantstotosue
suefor
forcompensatory
compensatoryand
andpunitive
punitive
damages.
damages.
Requires
Requiresaaheavier
heavierburden
burdenofofproof
proofon
onthe
thepart
partofofemployers
employers
ininrebutting
rebuttingclaims
claimsofofdiscrimination.
discrimination.
Provided
Providedextraterritorial
extraterritorialenforcement
enforcementofoffederal
federallabor
laborlaws
lawsinin
protecting
protectingU.S.
U.S.employees
employeeson
onoverseas
overseasassignments
assignmentswhere
where
Title
TitleVII
VIIcompliance
compliancedoes
doesnot
notviolate
violatelocal
localcountry
countrylaws.
laws.

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Federal
Federal Anti-Discrimination
Anti-Discrimination Laws
Laws
Family
Family and
and Medical
Medical Leave
LeaveAct
Act (1992)
(1992)

Requires
Requiresemployers
employerstotoprovide
provideup
uptoto12
12weeks
weeksofofunpaid
unpaid
leave
leavefor
forthe
thebirth,
birth,adoption,
adoption,ororserious
seriousillness
illnessofofaachild,
child,
family
familymember,
member,ororthe
theemployee
employeeduring
duringaa12
12month
monthperiod.
period.
Act
Actonly
onlycovers
coversorganizations
organizationswith
withfifty
fiftyorormore
moreemployees.
employees.
Employee
Employeemust
musthave
havebeen
beenemployed
employedaaminimum
minimumofof25
25hours
hours
per
perweek
weekoror1,250
1,250hours
hoursyearly.
yearly.Employees
Employeesinintop
top10%
10%ofof
employers
employerssalary
salaryrange
rangeare
arenot
notcovered
coveredby
bythe
theAct.
Act.
Employer
Employerisisrequired
requiredtotocontinue
continueemployees
employeesgroup
grouphealth
health
coverage
coverageduring
duringleave.
leave.
Employee
Employeemust
mustbe
beallowed
allowedtotoreturn
returntotosame/equivalent
same/equivalentjob.
job.

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EEOC
EEOC Enforcement
Enforcement of
of Federal
Federal Law
Law
Burden
Burden of
of proof
proof initially
initially falls
falls on
on the
the complainant
complainant
(employee)
(employee)to
todemonstrate:
demonstrate:

Disparate
Disparatetreatment
treatmentinindeliberate
deliberatediscrimination
discriminationofofaa
protected
protectedclass
classindividual
individualoror
Disparate
Disparate(adverse)
(adverse)impact
impactas
asaaresult
resultofofthe
theapplication
applicationofofaa
standard
standardorortreatment
treatmentapplied
appliedtotoall
allindividuals
individualsthat
thatresults
resultsinin
differential
differentialoutcomes
outcomesororconsequences
consequencesfor
forprotected
protectedgroups;
groups;
usually
usuallydemonstrated
demonstratedstatistically
statisticallyusing
usingthe
thefour-fifths
four-fifthsrule.
rule.
Four-fifths
Four-fifthsRule
Rulestates
statesthat
thatthe
theselection
selectionrate
ratefor
forprotected
protected
class
classisisnot
not80%
80%ofofthe
theselection
selectionrate
ratefor
forthe
themajority
majorityclass
class
then
thenaaprima
primafacie
faciecase
caseofofadverse
adverseimpact
impactisisestablished.
established.

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EEOC
EEOC Enforcement
Enforcement of
of Federal
Federal Law
Law
Employers
Employers rebutting
rebutting aa discrimination
discrimination case:
case:

Must
Mustdemonstrate
demonstratejob-relatedness
job-relatednessofofany
anycriteria
criteriautilized
utilizedininaa
selection
selectionprocess.
process.
Can
Canclaim
claimaabona
bonafide
fideoccupational
occupationalqualification
qualification(BFOQ)
(BFOQ)that
that
requires
requiresthe
theemployee
employeetotopossess
possessaaparticular
particularpersonal
personal
characteristic
characteristicororbe
beaamember
memberofofaaparticular
particulargroup.
group.
Can
Canuse
useofofaabona
bonafide
fideseniority
senioritysystem
systemthat
thatwas
wasnot
notset
setup
uptoto
intentionally
intentionallydiscriminate
discriminateagainst
againstaaprotected
protectedclass.
class.
Can
Canclaim
claimbusiness
businessnecessity;
necessity;that
thatthe
theselection
selectioncriteria
criteriaare
are
essential
essentialfor
forsafe
safeand
andefficient
efficientoperations
operationsofofthe
thefirm.
firm.

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Affirmative
Affirmative Action
Action
Affirmative
AffirmativeAction
Action Plans
Plans

Require
Requireorganizations
organizationstotodevelop,
develop,implement,
implement,and
andmaintain
maintainaa
program
programtotomake
makespecial
specialefforts
effortstotoinsure
insurethat
thattheir
theirworkforce
workforce
isisrepresentative
representativeofofthe
thesociety
societywhere
wherethe
thebusiness
businessoperates.
operates.
Are
Arerequired
requiredfor
fororganizations
organizationswith
with100
100ororemployees
employeesand
and
with
with$50,000
$50,000orormore
moreininfederal
federalcontracts.
contracts.
Filed
Filedwith
withthe
theDepartment
DepartmentofofLabor
Laborand
andmonitored
monitoredby
bythe
the
Office
OfficeofofFederal
FederalContract
ContractCompliance.
Compliance.
Are
Areconsidered
consideredtemporary
temporarymeasures
measurestotocorrect
correctthe
the
underutilization
underutilizationofofcertain
certainprotected
protectedclasses.
classes.

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Sexual
Sexual Harassment
Harassment
Supreme
Supreme Court
Court rulings:
rulings:
Meritor
MeritorSavings
SavingsBank
Bank

Sexual
Sexualharassment
harassmentisisaaform
formof
ofsexual
sexualdiscrimination
discriminationunder
under
Title
TitleVII.
VII.

Oncale
Oncalev.v.Sundowner
SundownerOffshore
OffshoreServices
Services

Same-sex
Same-sexharassment
harassmentisisactionable
actionableunder
underTitle
TitleVII.
VII.

Sexual
Sexual harassment
harassment (definition)
(definition)

isisan
anindividuals
individualsclear
clearrejection
rejectionofofan
anoffensive
offensiveand
and
inappropriate
inappropriate(unwelcome)
(unwelcome)advance.
advance.

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Forms
Forms of
of Sexual
Sexual Harassment
Harassment
Quid
Quid pro
pro Quo
Quo

The
Thepromise
promiseororuse
useofofwork-related
work-relatedbenefits
benefitsororthreats
threatstoto
bargain
bargainwith
withororcoerce
coercean
anindividual
individualfor
forsexual
sexualfavors.
favors.

Hostile
Hostile working
working environment
environment

The
Thepresence
presence(perceived
(perceivedororactual)
actual)ofofan
anoffensive
offensiveoror
threatening
threateningenvironment.
environment.

Harassment
Harassment standards
standards used
used by
by the
the court:
court:

The
Thereasonable
reasonablewoman
womantest.
test.
Pattern
Patternofofbehavior
behavior(frequency
(frequencyand
andpervasiveness)
pervasiveness)ororisolated
isolated
event/act
event/actofofan
anindividual.
individual.
Response
Responseofofthe
theorganization
organizationtotothe
thecomplaint.
complaint.

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Sexual
Sexual Harassment
Harassment

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