Legal and Ethical Aspects of Personnel ManagementAdvanced Marketing

What is Personnel Management

Process of hiring and developing employees so that they become more

valuable to the organization

Legal VS Ethical• Legal issues are matters that are governed by law• Ethical issues may be governed by company policy

Major Legal Aspects to Consider

• Laws at local, state, and federal jurisdictions regulate how companies conduct staffing and management of employees

• Title VII of 1964 Civil Rights Act banned most discriminatory hiring practices

• Three main sensitive areas in personnel management: Equal Employment Opportunity (EEO); Affirmative Action; and Sexual Harrassment

Equal Opportunity• EEO• Individuals protected from illegal discrimination• Based on certain characteristics such race, age, or gender• These individuals called “protected class”

Federal Laws Protect the Following

• Race, ethnic origin, color• Gender (women, including those who are pregnant)• Age (individuals over 40)• Individuals with Disabilities (Physical and Mental)• Military Experience (Viet Nam era veterans)• Religion (special beliefs and practices)

Purpose of EEO

Ensure everyone has equal opportunity of getting a job or being promoted at work

1964 Civil Rights Act, Title VII established EEO

Laws Enforced Under EEO• Civil Rights Act 1964- Prohibits discrimination based on race,

color, religion, nation origin, or sex• Civil Rights Act 1991- Reaffirms and tightens prohibition of

discrimination- Permits law suit for punitive damages in cases of intentional discrimination- burden of proof on employer

Affirmative Action• Requires employer to make an extra effort to hire and

promote people who belong to a protected class• Includes taking specific actions designed to eliminate present

effects of past discriminations

• Pregnancy Discrimination Act of 1978- Prohibits discrimination or dismissal of women because of pregnancy alone; protects job security during maternity leaves

• Americans with Disabilities Act- Prohibits discrimination against individuals with physical or mental disabilities or chronically ill; requires “reasonable accommodations” be provided

Laws Continues• Vocational Rehabilitation Act- Prohibits discrimination on basis

of physical or mental disabilities and requires employees be informated about affirmative action plans

Who Most Conform with EEO and Affirmative Action• Most employers in US must comply with Title VII• Required from private employers with 15 or more persons• All educational institutions• State, local governments• Public and Private Employment Agencies• Labor Unions with 15 or more members• Joint Labor-Management Committees for Apprenticeship and

Training

Sexual Harassment• Since 1980, guidelines used from EEO to define• “Unwelcome sexual advances for sexual favors, and other

verbal or physical conduct of a sexual nature”• Includes sexually suggestive remarks, unwanted touching,

sexual advances or sexual favors• Other verbal or physical conduct of sexual nature

Sexual Harrassment• 1993 Supreme Court Ruling-test widened for sexual

harassment under civil rights law• “would reasonably be perceived, and is perceived as hostile or

abusive”- • Employees don’t need to demonstrate that they have been

psychologically damaged to prove sexual harassment in workplace

• Simply must prove that environment is hostile

Sexual Harrassment Not Just Problem of WomenRecent Supreme Court rulings broaden definition of sexual harassment to include:• Same-sex harassment• Harrassment of males by femalse

Other Employment Laws• Fair Labor Standards Act- minimum wage; overtime, and child

labor• Employee Polygraph Protection Act- outlaws use of polygraph

for employment purposes• Privacy Laws- legal righrts regarding who has access to

information about work history and job performance• Whistleblower Protection Act-

Federal Laws Shaping Personnel Management

Law Date Description

National Labor Relations Act

1935 Requires employers to recognize a union chosen by the majority of the employees and to establish procedures governing collective bargaining

Age Discrimination in Employment Act

1967, Amended in 1978 and 1986

Prohibits age discrimination against employees between 40 and 65 years of age and restricts mandatory retirement

Occupational Safety and Health Act

1970 Establishes mandatory safety and health standards in organizations

Vietnam-Era Veterans Readjustment Assistance Act

1974 Prohibits discrimination against disabled veterans and Vietnam-era veterans

Mandatory Retirement Act

1978 Prohibits forced retirement of most employees before the age of 70

Immigration Reform and Control Act

1986 Prohibits employers from knowingly hiring illegal aliens and profits employment on the basis of national origin of citizenship

Worker Adjustment and Retraining Notification Act

1988 Require employees to provide 60 days/ notice before a facility closes or implements mass layoff

Employee Polygraph Protection Act

1988 Limits employer’s ability to use lie detector tests

Family and Medical Leave Act

1993 Permits employees in organizations with 50 or more workers to take up to 12 weeks of unpaid leave for family or medical reasons for each year

Activity

Students will view a video. Throughout the movie, students will identify unethical and illegal employment practices. 50 Points