Title: Introduction, Lecture 3: Introduction to Human Resources
1Fundamentals of Human Resources and the Law
- Prof. John Kammeyer-Mueller
- MGT 4301
2Plan
- Where are we?
- Know how HR fits the company
- Where do we want to be today?
- Understand the basics of employment
discrimination law - Learn about who and what is covered
- How will we know how were doing?
- Describe two historical arguments for and against
civil rights laws - Respondeat superior/vicarious liability
- The difference between protected classes and
protected groups - What is the Civil Rights Act of 1964 and why was
it passed? - What is the Age Discrimination in Employment Act
and why was it passed? - What is the Americans with Disabilities Act and
why was it passed?
3Metrics for Legal Policies and Procedures
- Costs
- Staff time to comply with legalistic policies and
procedures - Lawsuits following legal violations
- Services
- Clearly articulated policies and procedures
- Widely disseminated to all employees
- Performance
- Increased focus on work
- Employee productivity as a result of clarity
- Attitudes
- Improved satisfaction and commitment on the job
- Reduced tension among employees
4Does Fortune Favor the Beautiful?
5Attractiveness Bias Against Your Own Interest
- Economist V. Bhaskar analysed 69 episodes of
Shafted, which aired on Dutch TV in 2002, in
which the highest-scoring player picks a
contestant to eliminate at the end of each round.
It is to your advantage to pick a high scoring
partner. - Although the least attractive players scored no
worse in the show than others, they were twice as
likely to be eliminated in the first round. - In the final round of Shafted, the last two
players vie for an accumulated pot of money. Each
player must opt to share the prize or attempt to
grab it all for themselves. If one player opts to
grab while one opts to share, the grabber takes
the lot. If both try to grab, they both leave
empty-handed, so game theory dictates that the
leading contestant should pick a fellow finalist
who is likely to cooperate. Even though
attractiveness was found to have no bearing on
cooperativeness, the leader often elected to play
the final round with the most attractive of their
remaining rivals. - In 13 shows, these looks-based decisions even
overrode a simple imperative to choose their
highest-scoring rival, which would have led to
increases in the ultimate prize fund. In these
cases, the prize was 350 lower than it could
have been, on average. - Source New Scientist, August 2008
6Does Fortune Favor the Beautiful?
- Critical question
- Should employers be able to discriminate against
people because they are attractive or
unattractive? - Get together in groups and come up with three
reasons why this discrimination should be
permitted, and three reasons why it should be
forbidden by law - Purpose of this question?
- To illustrate why discrimination is regulated in
the first place - To illustrate what a tricky issue regulating
discrimination is
7How Much Regulation is Needed?
- Pro-regulation
- People are prone to stereotypes
- Historical evidence of strong explicit
discrimination and concern that it may be
repeated in the future - Evidence of disparate outcomes in salary
- Unequal representation in executive positions
8Median Weekly Incomes by Race/Ethnicity (men)
9Median Weekly Incomes by Race/Ethnicity (women)
10Median Weekly Incomes by Gender
11Evidence of Narrowing Wage Gaps
From Sakamoto, Wu, Tzeng, Demography 2000 All
coefficients are significant except the Japanese
American 1990 coefficient
12Representation in Management
- BLS data from 2007 show that of employed adults
- White males45
- White females 37
- African American males5
- African American females6
- Asian men2.5
- Asian women2
- Hispanic men8.5
- Hispanic women5.5
- Hispanic is not a racial group (½ of American
Hispanics self-identify as White) - Data on the left is Chief Executives from the
2007 Fortune 1000
13Skin Color and Income Is There a Relationship?
- Race is subjective and self-identified
- Different people may differentially consider
themselves part of racial groups - Hispanic is a difficult term to define and
includes those whose families are completely from
Spain and wealthy white individuals from a
variety of Central and South American countries - Research suggests that very few African Americans
are 100 of African descent, and many Whites,
Asians, and Native Americans also have a more
varied ethnic background than they might believe - Perhaps skin color can assess whether
discrimination exists? - There are studies where observers rate
interviewee skin color - Anecdotal and historical evidence of differential
discrimination against African Americans on the
basis of skin color
14Skin Color and Income Is There a Relationship?
- Darker skinned African Americans earn less money
- Could employers be discriminating?
- Are there some other characteristics that differ
based on skin color, possibly reflecting region
of the country (for example, New York has higher
wages than Georgia, and less sunshine)? - It is difficult to directly assess the first
hypothesis, but there is still a significant
negative relationship between income and skin
color even after holding constant a variety of
educational and regional characteristics - Goldsmith, Hamilton, and Darity, Shades of
Discrimination Skin Tone and Wages, American
Economic Review, 2007
15Skin Color and Income Is There a Relationship?
- Darker skinned immigrants earn less money
- Could employers be discriminating?
- Are darker skinned immigrants less skilled
(longer migrations, like from Europe or Asia,
tend to be much more common for skilled workers)? - Do people who work outside become more dark
skinned compared to managerial and professional
workers? - It is difficult to directly assess the first
hypothesis, but there is still a significant
negative relationship between income and skin
color even after holding constant a variety of
educational, English language skills, and
occupation-related characteristics - Joni Hersch, Profiling the New Immigrant Worker
The Effects of Skin Color and Height, Journal of
Labor Economics, 2008
16Demography and Earnings
17Emerging Issues in What Constitutes a Protected
Class
- Height discrimination
- The evidence
- Taller candidates are more likely to win
elections - Height increases leadership ratings (r.25)
- Height is related to ratings of job performance
(r.18) - How does this line up for protected class issues?
- Its obviously something you cant do anything
about - It does create differences across protected class
areas
18How Much Regulation is Needed
- Anti-regulation
- Some discrimination is good
- Differences in education, workforce attachment,
etc. - Differences in productivity
- Irrational discrimination is expensive
- Have to recruit more people to get an all white
male workforce - Have to hire sub-optimally
- Therefore, discriminators go out of business
- Everyone seems to hope these laws wont be needed
- 25 year sunset on affirmative action decision
- EEOC specifically works to make itself unnecessary
19Education Rates By Demographic Group
20(No Transcript)
21The 14th Amendment
- Major components
- Federal government, for the first time, creates
limits on states ability to make their own laws - Introduces the concept of minority rights (not
in name, but in concept) to the law - Equal protection clause
- No state shall make or enforce any law which
shall ... deny to any person within its
jurisdiction the equal protection of the laws. - Now broadly interpreted as restraining the
government's ability to discriminate based on
"classes" of race, sex, alienage, illegitimacy,
wealth and any other class - Applies only to governments
- The Equal Protection clause has been invoked in
recent affirmative action decisions involving the
U of Mich
22From Plessy to Brown
- Plessy v. Ferguson
- Homer Plessy purchased a first class train ticket
(as a deliberate provocation against Jim Crow
laws), which was denied because he was 1/8th
black - Creates the concept of separate but equal which
dominates the law of civil rights until 1954 - Brown v. Topeka Board of Education
- Linda Brown had to walk a mile to an all black
school even though she was very close to a white
school - Generally eliminated the legal basis for separate
but equal - Technically, Plessy was not completely eliminated
as a legal argument until Title II of CRA 1964
23EEO Affects All Areas of HR
- Staffing
- Methods for selection
- Outcomes of selection methods
- Termination as selection in reverse
- Training and development
- Equal access to developmental opportunities
- Performance appraisal
- Accurate evaluation of employee performance
- Compensation
- Allocation of pay for performance
- The comparable worth debate
24Critical Concepts in Employment Discrimination
- Discrimination
- Employment decisions or working conditions that
benefit members of one group compared to members
of another - What is good discrimination?
- Tort
- A claim involving civil, monetary outcomes
- Not crimes
- Torts versus crimes
- Dont require a unanimous jury
- Require economic damages
25Critical Concepts in Employment Discrimination
- Class action
- A single person or group of persons represents
the legal interests of a larger group - Frequent when a large class of employees have
been affected by the same employment decision - Extremely high costs to employers if they lose
- Obviously attractive to trial lawyers
26Critical Concepts in Employment Discrimination
- Respondeat superior/vicarious liability
- Employers are responsible for the actions of
their agents even if unaware of agents actions - Discrimination is often a supervisor exercising
or abusing his or her official position, so it is
seen as acting in the stead of the organization - A company is responsible for employees who
discriminate even if it violates company policy - What would make you more likely to blame an
employer for discrimination? What would make you
say its not really their fault?
27Employer Responsibility Clarified in Two 1998
Cases
- Faragher v. Boca Raton
- Basic story
- Beth Ann Faragher was supervised by Billy Terry,
David Silverman, and Robert Gordon - She and other lifeguards claimed these
individuals engaged in uninvited and offensive
touching, lewd remarks, and speaking of women in
offensive terms - Eventually, Faragher quit but never brought a
formal complaint - After quitting, Faragher sued the city for
discrimination/harassment - City had a sexual harassment policy that they
addressed to all employees, but they did not
disseminate the policy to all divisions under the
Citys jurisdiction - Importantly there was no way to bypass reporting
to the supervisor provided in the harassment
complaint policy - Employer must exercise reasonable care
28Employer Responsibility Clarified in Two 1998
Cases
- Burlington Industries v. Ellerth
- Employer is liable if they knew or should have
known - Slowik was a mid-level manager
- Repeated boorish and offensive remarks and
gestures - Ellerth refused all of Slowiks advances, yet
suffered no tangible retaliation - She never informed anyone in authority about
Slowiks conduct, despite knowing Burlington had
a policy against sexual harassment. - The supreme court didnt decide the case, but
just noted that the employer did have an
affirmative defense because they did have a
potentially effective policy in place
29Employment Discrimination and Retaliation
- Sheila White was the only woman in her department
of forklift operators at Burlington Northern's
Memphis train yard. - After only a few months on the job, White
complained of sexual harassment by her boss she
was suspended - A few days after her suspension, the company told
White she was getting transferred to track
laborer duties, because other employees
complained that White was given the forklift job
over more experienced male employees - White responded to the re-assignment by filing
complaints with the EEOC for sexual
discrimination and retaliation - Approximately six months after White was moved to
track laborer she was suspended for alleged
insubordination
30Employment Discrimination and Retaliation
- On Dec. 5, 2005, the U.S. Supreme Court accepted
review in the case - "Not every trifling event in the workplace should
give rise to events of retaliation," said Carter
Phillips, counsel for Burlington Northern, "If
you are just transferred from one set of
responsibilities to another, there are no adverse
affects." - Approximately two times as many claims of
retaliatory discrimination were filed in the last
few years than were filed a decade ago, according
to the EEAC. For this reason, the EEAC says it
seeks from the Court a set of uniform guidelines
determining what constitutes retaliatory
behavior. - On June 22, 2006, the Court held 9-0 for White
- Justice Steven Bryer wrote We conclude that the
anti-retaliation provision does not confine the
actions and harms it forbids to those that are
related to employment or occur at the workplace.
We also conclude that the provision covers those
(and only those) employer actions that would have
been materially adverse to a reasonable employee
or job applicant
31Employment Discrimination and Retaliation
- Gomez-Perez v. Potter (decided in 2008)
- Myrna Gomez-Perez worked full-time for the United
States Postal Service (USPS) in Dorado, Puerto
Rico. She transferred to another office, then
requested to return to her past position in
Dorado. After her request was denied, she filed a
complaint with the USPS alleging age
discrimination. Gomez-Perez claims that after she
filed the complaint, her supervisors retaliated
by reducing her work hours and lodging false
complaints against her. - Without ruling on the specific case itself, the
court ruled that summary judgment against her was
not warranted and that Federal employees did have
the right to file retaliation claims
32Employment Discrimination and Retaliation
- CBOCS West, Inc. v. Humphries (decided in 2008)
- Herndrick Humphries, an African American, worked
as an associate manager in a Cracker Barrel
restaurant for three years, until Cracker Barrel
terminated his employment on December 5, 2001 for
violation of company policy. In August and
October 2001, Humphries complained to his
district manager about his general managers
disciplinary reports, racially offensive remarks,
and the termination of fellow employee, Venis
Green. Humphries believes his general mangers
disciplinary reports and the termination of Green
were racially motivated and groundless. - Again, the court was deciding whether he could
use 42 U.S.C. 1981 to file a discrimination
claim. Section 1981 protects parties from
discriminatory treatment both at the time when
contracts are formed, and in post-formation
conduct. Using Section 1981 gives employees
greater flexibility in filing claims of
retaliation, because they will not be subject to
the filing deadlines and limits on damages found
in Title VII of the Civil Rights Act of 1964.
33How Are Discrimination Claims Processed?
- The Equal Employment Opportunity Commission is a
regulatory body that oversees the enforcement of
civil rights laws. - Conduct initial investigation
- Issues fact finding letters
- After the EEOC has performed its investigation,
the courts make decisions about what will happen
next
34Discrimination perceived
File claim with EEOC within 180 days (300 if
there is a relevant state law)
EEOC investigation
Decide case doesnt have merit (2/3 of all cases
are found to be without merit)
Attempt to enter consent decree with org.
If discrimination is not redressed, send letter
to the courts
Settlement/arbitration
Employee files suit
Disparate treatment
Disparate impact
Defendant practices are discouraged and/or have
no consequence
Defendant practice is job-related business
necessity
Plaintiff practices are not actually job related
Plaintiff enforcement is insufficient or
practices have consequence
Ruling from the court
35Alternative Dispute Resolution Processes
- An increasing percentage of EEO claims never
involve a lawyer or a courtroom about 70 of EEO
claims are settled out of court - Employers often require employees to sign an
agreement that disputes will be settled through
alternative dispute resolution processes - Is this a good idea?
- Media coverage?
- Cost?
- Timeliness?
- Repeat player advantages?
36The EEOC Position on Mediation
- Successful mediation avoids a time consuming
investigation and achieves a prompt resolution of
the charge. - The majority of mediations are completed in one
session, which usually lasts for one to five
hours. - Mediators are neutral third parties who have no
interest in the outcome. Their role is to help
the parties resolve the charge. - Settlement agreements secured during mediation
are confidential and do not constitute an
admission by the employer of any violation of
laws enforced by the EEOC. - Note that this refers to using the EEOC as a
mediator, which is an alternative to other forms
of ADR that are entirely in-house.
37EEOC Research on Mediation
- The average time to complete mediation was 67
days from the filing of a charge, and that the
mediation sessions averaged 3.7 hours. - Fifty-two percent of the mediations concluded
with settlements and over half of these
settlements provided for financial payments to
the charging party. - Most of the participants were satisfied with the
mediation process 66 of the charging parties
and 72 of respondents expressed satisfaction
with the process 91 of the charging parties and
93 of the respondents rated the process as fair.
- Eighty-four percent of the charging parties and
83 of the respondents indicated that they would
use the mediation process again, if they had a
similar problem.
38Alternative Dispute Resolution Processes
- Mediation
- Agree to meet with a mutually agreed upon third
party who has no decision making power - This mediator will attempt to outline the issues
for both sides and encourage structured bargaining
- Binding arbitration
- Agree to meet with a mutually agreed upon third
party who has full contractual decision making
power - The arbitrator will outline the issues for both
sides and find a reasonable compromise
39Civil Rights Act of 1964Title VII
- Bedrock of all civil rights law (even outside US)
- Three major backer groups
- African-Americans
- Religious/cultural groups
- Southern business owners
- Four protected classes
- Race or color
- Religion
- National origin
- Gender
40Critical Concepts in Employment Discrimination
- Basic language (adapted from Title VII)
- It is unlawful for an employer to hire or
discharge an individual with respect to
compensation, terms, conditions, or privileges of
employment because of protected class status - It is also unlawful to limit, segregate, or
classify employees or applicants for employment
in any way which would tend to deprive an
individual of employment opportunities because of
protected class status - Important point use of protected class rather
than protected group status
41Despite the CRA of 1964, Employers Can Still
- Apply different standards of compensation, or
different terms, conditions, or privileges of
employment pursuant to a bona fide seniority or
merit system. - To give and to act upon the results of any
professionally developed ability test. - A MAJOR EXEMPTION FOR EMPLOYERS
- Nothing contained in this title shall be
interpreted to require any employerto grant
preferential treatment to any individual or to
any group because of the race, color, religion,
sex, or national origin of such individual or
group.
42Breaking Down Protected Classes and Groups
Protected Class Race
Protected Class Gender
Group Native Amer.
Group Asian
Group Females
Group Males
Group African
Group European
Group Pacific island
Group Etc., etc.
43Implications
- Because there are generally no protected groups
(with one important exception which well review
later), there is no such thing as reverse
discrimination - In other words, your textbook is WRONG on a
couple of counts - Case examples
- Ford settled out of course for 10.5 million for
discriminating against white male employees - Men file about 14.7 of all harassment claims
- White men can sue, however, they are much less
likely to be plaintiffs
44Race, Religion, and National Origin
- Race and national origin
- Still the number one source of claims
- Actions range across many categories
- Glass ceiling effects
- Overt policies in hiring and promotions
- English only rules
- Religious discrimination claims escalated in the
early 1990s - Differences in holidays allowed (resultflextime)
- Requirement for violation of religious principles
- Grooming requirements (shaving, haircuts)
- Dress requirements (hijab/headscarf)
45Recent Legal Landmarks
- Webb v. City of Philadelphia U.S. District Court,
Eastern Pennsylvania Case No. 05-5238 (June 12,
2007) - The Philadelphia Police Department denied a
Muslim officer's request for permission to wear a
traditional headpiece, or "khimar," while on
duty. - Summarily dismissing Kimberlie Webb's religious
bias claims, U.S. District Judge Harvey Battle
accepted the city's "undue hardship" defense. - The uniform policy "has a compelling public
purpose. - Employment cases involving "garb-specific
religious requests" are cropping up more
frequently, particularly in the public sector.
46Age Discrimination in Employment Act of 1967
- Prohibits discrimination against employees over
the age of 40. - Does not prohibit discrimination against the
young - Eliminates most mandatory retirement
- Rationale
- Older workers make a tempting target for firing
- Top of the pay scale
- Close to pension receipt
- Older workers may have a hard time finding
long-term employment
47Age Discrimination in Employment Act of 1967
- Specific reasons congress passed the law
- In the face of rising productivity and affluence,
older workers find themselves disadvantaged in
their efforts to retain employment, and
especially to regain employment when displaced
from jobs. - The setting of arbitrary age limits regardless of
potential for job performance has become a common
practice. - Long-term unemployment with resultant
deterioration of skill, morale, and employer
acceptability is, relative to the younger ages,
high among older workers. - The existenceof arbitrary discrimination in
employment because of age, burdens commerce and
the free flow of goods in commerce. - IMPORTANTLY
- The prohibitions in this chapter shall be limited
to individuals who are at least 40 years of age.
48Age Discrimination in Employment Act of 1967
- Economic rationale
- Older workers tend to be at the top of the pay
scale (implicit contract) - Older workers could be fired close to pension
receipt - Older workers may have a hard time finding
long-term employment because they are,
economically, a bad investment (Becker model)
49Despite the ADEA, Employers Can Still
- Take any action where age is a bona fide
occupational qualification reasonably necessary
to the normal operation of the particular
business. - Observe the terms of a bona fide seniority
systemexcept that no such seniority system shall
require or permit the involuntary retirement. - Engage in voluntary early retirement incentive
plan consistent with the relevant purpose or
purposes of this chapter. - Discharge or otherwise discipline an individual
for good cause.
50Americans with Disabilities Act of 1990
- Historically, the disabled rights act came from a
number of fronts - As an outgrowth of the civil rights struggles of
the 1960s - As increasing technological interventions made
routine medical disabilities far less disabling
than they had been in the past - As a part of the progressive anti-institutional
movement in psychiatry - As part of a series of legal interventions to
allow disabled individuals to access public spaces
51Americans with Disabilities Act of 1990
- Some 43,000,000 Americans have one or more
physical or mental disabilities, and this number
is increasing as the population as a whole is
growing older - Studies have documented that people with
disabilities, as a group, occupy an inferior
status in our society, and are severely
disadvantaged socially, vocationally,
economically, and educationally - Individuals with disabilitieshave been faced
with restrictions and limitations, subjected to a
history of purposeful unequal treatment, and
relegated to a position of political
powerlessness in our society, based on
characteristics that are beyond the control of
such individuals and resulting from stereotypic
assumptions not truly indicative of the
individual ability of such individuals. - The continuing existence of unfair and
unnecessary discrimination and prejudice denies
people with disabilities the opportunity to
compete on an equal basisand costs the United
States billions of dollars in unnecessary
expenses resulting from dependency and
non-productivity.
52Disability Employment Outcomes
- Evidence shows
- Disabled individuals are much less likely to be
employed - Among those with jobs, disabled individuals make
less per hour and work fewer hours - From DeLeire, J Human Resources, 2000
53Americans with Disabilities Act of 1990
- What is the ADA?
- Protects people with a disability from being
discriminated against along 3 lines - Intentional discrimination for reasons of social
bias - Neutral standards with disparate impact on the
disabled - Results of barriers to job performance that could
be overcome with an accommodation - Precedent
- In 1973 Congress passed the Vocational
Rehabilitation Act that protected disabled
workers in federal government jobs
54Americans with Disabilities Act of 1990
- Physical disabilities
- Mobility/physiological
- Wheelchairs
- Cerebral palsy
- Diabetes
- Sensory
- Blindness/nearsighted
- Hearing impairment
- Appearance
- Physical deformity
- Odor
- Mental disabilities
- Learning disorders
- Dyslexia
- Autism
- Psychiatric diagnoses
- Depression
- Schizophrenia
- Addictions
- Alcoholism
- Drug use
55What Are the Most Commonly Claimed Disabilities?
56Americans with Disabilities Act of 1990
- Important minimal standard
- It must be sufficient to be chronic
- It must substantially limit major life
activities - The role of medical professions
- A disability is still a disability even if
medications make it less apparent - Bipolar individuals on lithium and diabetics with
insulin are specifically mentioned in Taylor v.
Phoenixville School Districts (3rd Cir.) - Often, specific medical diagnoses are invoked
57Emerging Issues in What Constitutes a Protected
Class
- Sexual orientation
- Extreme controversy
- Cracker Barrels termination policy
- Transsexuals are generally not covered for
cross-dressing - Executive branch employment (Clinton executive
order) - Major legal issues
- Places discrimination is barred
- Employment non-discrimination act (ENDA)
- Domestic partner benefits
- Proof for Beckers theory?
- Disneys domestic partner policy and the recently
ended boycott - American Express and competitive advantage
- 100 Best Companies to work for and HRC HRC quotes
58State Variation in Legal Coverage for Sexual
Orientation
Dark green-sexual orientation gender identity
covered Pale green-sexual orientation covered
59Spotlight on Floridas ENDA Regulations
- Current coverage
- Pensacola
- Gainesville
- Orlando
- Tampa/St. Pete
- Sarasota
- Palm Beach
- Broward county
- Miami-Dade county
- Not covered
- Jacksonville
- Tallahassee
- Ft. Meyers
60Emerging Issues in What Constitutes a Protected
Class
- Weight discrimination
- Discriminatory attitudes found in empirical
research - Believed to be lacking self-discipline or lazy
- Studies show they are less preferred in job
interviews - Weight is trumped by qualifications
- Weight is more linked to discrimination for sales
jobs - Facilities may be difficult to access for the
obese - Is this a disability?
- Physical impairments must substantially limit
major life activities to qualify for the ADA - The courts have generally had a threshold of 100
or more overweight to count as a disability
61Wrap Up
- Where are we?
- Know how HR fits the company
- Where do we want to be today?
- Understand the basics of employment
discrimination law - Learn about who and what is covered
- How will we know how were doing?
- Describe two historical arguments for and against
civil rights laws - Respondeat superior/vicarious liability
- The difference between protected classes and
protected groups - Civil Rights Act of 1964
- What is the Age Discrimination in Employment Act
and why was it passed? - What is the Americans with Disabilities Act?