Federal Anti-Discrimination LawsFederal Anti-Discrimination Laws • Equal Pay Act 1963 – Prohibits wage discrimination based on gender for jobs that require equal skill, effort, & respon
Trang 1EMPLOYMENT LAW
Trang 2Critical Strategic Issue
Critical Strategic Issue
• Significant impact on cost structure
– Establishment & maintenance of internal
mechanisms
– Violations can result in significant penalties
• Makes sense to be an equal opportunity
employer
– Avoid penalties for violations
– Hire most qualified applicant for job or to promote
most qualified individual
• Significant impact on cost structure
– Establishment & maintenance of internal
mechanisms
– Violations can result in significant penalties
• Makes sense to be an equal opportunity
employer
– Avoid penalties for violations
– Hire most qualified applicant for job or to promote most qualified individual
Trang 3Employment-at-will
Doctrine developed as part of British common law which states the
employment relationship should be a private matter between
employee and employers, terminable by either part at any time for any reason or no reason whatsoever
Applies to the majority of the workforce in the United States with the major exceptions of
1) a collective bargaining agreement
2) an express written contract
3) terms of implied contracts
4) judicially determined “public policy exceptions”
5) federal, state and local statutes which prohibit discrimination in
employment against given specified protected classes.
Doctrine developed as part of British common law which states the
employment relationship should be a private matter between
employee and employers, terminable by either part at any time for any reason or no reason whatsoever
Applies to the majority of the workforce in the United States with the major exceptions of
1) a collective bargaining agreement
2) an express written contract
3) terms of implied contracts
4) judicially determined “public policy exceptions”
5) federal, state and local statutes which prohibit discrimination in
employment against given specified protected classes.
Trang 4Federal Anti-Discrimination Laws
Federal Anti-Discrimination Laws
• Civil Rights Act of 1866
– Gave all citizens right to enter into contracts – No remedies for unjust treatment were
provided
• Civil Rights Act of 1871
– Gave individuals right to sue if they felt they
had been deprived of rights under 1866 Act
• Civil Rights Act of 1866
– Gave all citizens right to enter into contracts – No remedies for unjust treatment were
provided
• Civil Rights Act of 1871
– Gave individuals right to sue if they felt they
had been deprived of rights under 1866 Act
Trang 5Federal Anti-Discrimination Laws
Federal Anti-Discrimination Laws
• Equal Pay Act (1963)
– Prohibits wage discrimination based on gender for
jobs that require equal skill, effort, & responsibility & are performed under similar working conditions
– Exceptions to equal pay
• Bona fide seniority systems
• Quality of job performance (i.e., merit-based pay
systems)
• Quantity of output (i.e., piece-rate pay systems)
• Factors (contingencies) other than sex (gender)
• Equal Pay Act (1963)
– Prohibits wage discrimination based on gender for jobs that require equal skill, effort, & responsibility & are performed under similar working conditions
– Exceptions to equal pay
• Bona fide seniority systems
• Quality of job performance (i.e., merit-based pay
systems)
• Quantity of output (i.e., piece-rate pay systems)
• Factors (contingencies) other than sex (gender)
Trang 6Federal Anti-Discrimination Laws
Federal Anti-Discrimination Laws
• Civil Rights Act (1964) - Title VII
– Title VII prohibits discrimination in employment based on
race, color, religion, sex, & national origin
– Covers conditions of employment: hiring, firing, promotion,
transfer, compensation, & admission to training
– Applies to all private employers with 15 or more employees,
state & local governments, educational institutions,
employment agencies, & unions
– Established & Equal Employment Opportunity Commission
(EEOC) to oversee & enforce Title VII & all other federal labor laws
• Civil Rights Act (1964) - Title VII
– Title VII prohibits discrimination in employment based on
race, color, religion, sex, & national origin
– Covers conditions of employment: hiring, firing, promotion,
transfer, compensation, & admission to training
– Applies to all private employers with 15 or more employees,
state & local governments, educational institutions,
employment agencies, & unions
– Established & Equal Employment Opportunity Commission
(EEOC) to oversee & enforce Title VII & all other federal
labor laws
Trang 7Federal Anti-Discrimination Laws
Federal Anti-Discrimination Laws
• Age Discrimination Act (1967)
– Prohibits employment discrimination against
employees age 40 or older
– Prohibits setting of mandatory retirement ages
except in cases of public safety (e.g., airline pilots)
– Amended 1990 by Older Workers Protection Act
which prohibits discrimination in provision of benefits
& required signing of age discrimination waivers at layoff
– Covers all employers including federal government
• Age Discrimination Act (1967)
– Prohibits employment discrimination against
employees age 40 or older
– Prohibits setting of mandatory retirement ages
except in cases of public safety (e.g., airline pilots)
– Amended 1990 by Older Workers Protection Act
which prohibits discrimination in provision of benefits
& required signing of age discrimination waivers at layoff
– Covers all employers including federal government
Trang 8Federal Anti-Discrimination Laws
Federal Anti-Discrimination Laws
• Rehabilitation Act (1973)
– Prohibited discrimination by federal (but not private)
contractors against handicapped applicants or employees
– Definition of handicapped individuals
• Persons with physical or mental impairment that substantially
limits one or more major life activities
• Persons with history or record of such impairment
• Persons regarded as having such an impairment
– Handicapped individuals must be “otherwise qualified” to
perform (with reasonable accommodation) essential
functions of job (e.g., no blind bus drivers)
• Rehabilitation Act (1973)
– Prohibited discrimination by federal (but not private)
contractors against handicapped applicants or employees
– Definition of handicapped individuals
• Persons with physical or mental impairment that substantially
limits one or more major life activities
• Persons with history or record of such impairment
• Persons regarded as having such an impairment
– Handicapped individuals must be “otherwise qualified” to
perform (with reasonable accommodation) essential
functions of job (e.g., no blind bus drivers)
Trang 9Federal Anti-Discrimination Laws
Federal Anti-Discrimination Laws
• Pregnancy Discrimination Act (1978)
– Prohibits employers from discriminating against pregnant
employees by requiring pregnancy be treated as any other medical disability
– Does not require reinstatement of returning employee to
same job
– Does not allow employer to determine dates of leave
– Employer cannot refuse to hire or promote on basis of
pregnancy
– Employer cannot provide health plans that do not cover
pregnancy
• Pregnancy Discrimination Act (1978)
– Prohibits employers from discriminating against pregnant
employees by requiring pregnancy be treated as any other medical disability
– Does not require reinstatement of returning employee to
same job
– Does not allow employer to determine dates of leave
– Employer cannot refuse to hire or promote on basis of
pregnancy
– Employer cannot provide health plans that do not cover
pregnancy
Trang 10Federal Anti-Discrimination Laws
Federal Anti-Discrimination Laws
• American With Disabilities Act (1990)
– Prohibits all employers with 15 or more employees from
discriminating against disabled persons
– Courts have issued ambiguous & conflicting rulings on
“medical conditions,” “major life activities,” & what constitutes
“disability.” Decisions made on a case-by-case basis
– Determination of “reasonable accommodation”
• Cost of accommodation & resources of employer
• Nature of job & workplace safety issues
• Any relevant collective bargaining provisions
• American With Disabilities Act (1990)
– Prohibits all employers with 15 or more employees from
discriminating against disabled persons
– Courts have issued ambiguous & conflicting rulings on
“medical conditions,” “major life activities,” & what constitutes
“disability.” Decisions made on a case-by-case basis
– Determination of “reasonable accommodation”
• Cost of accommodation & resources of employer
• Nature of job & workplace safety issues
• Any relevant collective bargaining provisions
Trang 11Federal Anti-Discrimination Laws
Federal Anti-Discrimination Laws
• California’s A.B 2222
– Significantly less restrictive requirements for
employees to show disability
– Significantly less restrictive requirements for
employees to show disability
– No limits to damages
– Burden of proof shifted from employee to employer – Relevance: California law is often harbinger of laws adopted elsewhere
Trang 12Federal Anti-Discrimination Laws Federal Anti-Discrimination Laws
Americans With Disabilities Amendments Act of
2008 (ADAAA)
• Requires that impairments be evaluated without considering
mitigating measures
• Disabilities which are episodic or in remission are protected
• Specifies major life activities as including “eating, sleeping, walking,
standing…” and a host of other daily activities
• Lowers the standard on determining whether an individual is
“regarded” as having a disability
• Directs EEOC to reinterpret “substantially limits” to “significantly
• Disabilities which are episodic or in remission are protected
• Specifies major life activities as including “eating, sleeping, walking,
standing…” and a host of other daily activities
• Lowers the standard on determining whether an individual is
“regarded” as having a disability
• Directs EEOC to reinterpret “substantially limits” to “significantly
restricts”
Trang 13Federal Anti-Discrimination Laws
Federal Anti-Discrimination Laws
• Civil Rights Act (1991)
– Extended Title VII coverage to federal employees – Allows litigants to sue for compensatory & punitive
damages
– Requires heavier “burden of proof” on part of
employers in rebutting claims of discrimination
– Provided “extraterritorial enforcement” of federal
labor laws in protecting U.S employees on
overseas assignments
• Civil Rights Act (1991)
– Extended Title VII coverage to federal employees – Allows litigants to sue for compensatory & punitive damages
– Requires heavier “burden of proof” on part of
employers in rebutting claims of discrimination
– Provided “extraterritorial enforcement” of federal labor laws in protecting U.S employees on
overseas assignments
Trang 14Federal Anti-Discrimination Laws
Federal Anti-Discrimination Laws
• Family & Medical Leave Act (1992)
– Requires employers to provide up to 12 weeks of unpaid
leave for birth, adoption, or serious illness of a child, family member, or employee during a 12 month period
– Act only covers organizations with fifty or more employees– Employee must have been employed minimum of 25 hours
per week or 1,250 hours yearly
– Employees in top 10% of employer’s salary ranges not
covered
– Employer required to continue employee’s group health
coverage during leave
– Employee must be allowed to return to same/equivalent job
• Family & Medical Leave Act (1992)
– Requires employers to provide up to 12 weeks of unpaid
leave for birth, adoption, or serious illness of a child, family member, or employee during a 12 month period
– Act only covers organizations with fifty or more employees– Employee must have been employed minimum of 25 hours
per week or 1,250 hours yearly
– Employees in top 10% of employer’s salary ranges not
covered
– Employer required to continue employee’s group health
coverage during leave
– Employee must be allowed to return to same/equivalent job
Trang 15Federal Anti-Discrimination Laws
Federal Anti-Discrimination Laws
Family & Medical Leave Act (1992)
• State leave laws greatly complicate employee
leave under the FMLA
• Individual states often provide more generous
leave, cover a wider range of employers and
include medical conditions which are not covered under the FMLA
• State laws vary dramatically from state to state
Family & Medical Leave Act (1992)
• State leave laws greatly complicate employee
leave under the FMLA
• Individual states often provide more generous
leave, cover a wider range of employers and
include medical conditions which are not covered under the FMLA
• State laws vary dramatically from state to state
Trang 16Federal Anti-Discrimination Laws
Federal Anti-Discrimination Laws
Genetic Information Nondiscrimination Act (2008)
•prohibits the use of genetic information in
decisions related to health insurance and
employment
•Employers need to utilize extreme caution in
collecting information about employees which could give rise to a GINA claim.
Genetic Information Nondiscrimination Act (2008)
•prohibits the use of genetic information in
decisions related to health insurance and
employment
•Employers need to utilize extreme caution in
collecting information about employees which could give rise to a GINA claim.
Trang 18EEOC Enforcement of Federal Law
EEOC Enforcement of Federal Law
• Burden of proof initially falls on complainant
(employee) to demonstrate
– Disparate treatment in deliberate discrimination of “protected
class” individual or
– Disparate (adverse) impact as result of application of
standard or treatment applied to all individuals that results in differential outcomes or consequences for protected groups; usually demonstrated statistically using “four-fifths rule”
– Four-fifths rule states that if selection rate for protected class
is not 80% of selection rate for majority class then a prima facie case of adverse impact is established
• Burden of proof initially falls on complainant
(employee) to demonstrate
– Disparate treatment in deliberate discrimination of “protected
class” individual or
– Disparate (adverse) impact as result of application of
standard or treatment applied to all individuals that results in differential outcomes or consequences for protected groups; usually demonstrated statistically using “four-fifths rule”
– Four-fifths rule states that if selection rate for protected class
is not 80% of selection rate for majority class then a prima facie case of adverse impact is established
Trang 19EEOC Enforcement of Federal Law
EEOC Enforcement of Federal Law
• Employers rebutting discrimination case:
– Must demonstrate job-relatedness of any criteria utilized in
selection process
– Can claim bona fide occupational qualification (BFOQ) that
requires employee to possess particular personal
characteristic or be member of particular group
– Can use of bona fide seniority system not set up to
intentionally discriminate against protected class
– Can claim “business necessity”; that selection criteria are
essential for safe & efficient operations of firm
• Employers rebutting discrimination case:
– Must demonstrate job-relatedness of any criteria utilized in
selection process
– Can claim bona fide occupational qualification (BFOQ) that
requires employee to possess particular personal
characteristic or be member of particular group
– Can use of bona fide seniority system not set up to
intentionally discriminate against protected class
– Can claim “business necessity”; that selection criteria are
essential for safe & efficient operations of firm