MGT 430 – Spring 2016Class 4 – Chapter 3

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IMPORTANT LABOR LAWS

1963 – Equal Pay Act

1967 - Age Discrimination in Employment Act

1971 – Occupational Safety & Health Act

1974 – Vietnam Era Veterans Readjustment Act

1978 – Pregnancy Discrimination Act

1990 – Americans With Disabilities Act

IMPORTANT LABOR LAWS

1993 – Family Medical Leave Act

1994 - Uniformed Services Employment and Reemployment Act

1996 - Immigration Reform and Control Act

2009 – Lilly Ledbetter Fair Pay Act

Equal Pay Act of 1963 - Kennedy

• Amendment to Fair Labor Standards Act (FLSA)• Gender cannot be factor in paying employees• Must pay males and females equally if performing jobs substantially equal

in terms of skill, effort, responsibility, working conditions• Pay differences allowed for merit, seniority, quality or quantity of

production or other non-gender related factors• Employer must prove stated reason for pay differences as a justifiable

defense

Age Discrimination in Employment Act – 1967(Johnson)

Prohibits discrimination in employment against individuals 40 years of age and older. The ADEA includes a broad ban against age discrimination and also specifically prohibits:• Discrimination in hiring, promotions, wages, or termination of

employment and layoffs.• Statements or specifications in job notices or advertisements of

age preference and limitations.• Denial of benefits to older employees. • Since 1986 it has prohibited mandatory retirement in most

sectors.

ADEA & HRM CONSIDERATIONS

- Older workers tend to be paid higher than younger workers- Older workers may not be able to keep up with technology- Older workers may not be as flexible+ Older workers reflect a tremendous pool of talent and resources+ Older workers present valuable strengths, e.g. work ethic, interpersonal skills, deep knowledge of the business and industry, mentoring

Occupational Safety & Health Act of 1971 - Nixon

• OSHA’s mission is to prevent work-related injuries, illnesses, and occupational fatality by issuing and enforcing standards for workplace safety and health• HRM promotes safety• HRM Reinforces safe practices• HRM helps identify job hazards• HRM vigorously communicates safety policies

OSHA EXAMPLES

• Permissible exposure limits – chemicals & dust• Personal protective equipment• Confined spaces – tanks, manholes, buddy system• Hazardous communication• Exposure to asbestos• Mandatory safety training• Back up aural warnings on construction vehicles• Blocking off aisles at Lowes/HD when using forklifts• Cables and plumbing lines

OSHA CONTROVERSIES

• Cost of regulation and enforcement vs. benefit of reduced worker injury, illness & death;

• Ineffectiveness of penalties

• Accused of being more devoted to the numbers of inspections than to actual safety

• A typical bureaucracy?

Silly Safety Rules

• DANGER: Do not hold the cutting end of the chainsaw• Do not use hair dryer while showering• Do not iron clothes while wearing them• Ignite lighter away from face• Hair coloring: Warning: Do not use as an ice cream topping• Caution: Do not touch exposed wires. Death may result: $200 fine

More Stupid Safety Warnings

Vietnam Era Veteran's Readjustment Act of 1973(Nixon)

Requires federal contractors and sub contractors to take affirmative action toward employing veterans of the Vietnam War.

Pregnancy Discrimination Act of 1978 (Carter)

• Prohibits discrimination because of pregnancy, childbirth, or related medical condition

• Employer must treat pregnancy same as any other medical-related condition or temporary disability

• Company health plans cannot exclude pregnancy

Americans with Disabilities Act of 1990 (ADA)(G.H.W.Bush)

• Prohibits employers from using disability as basis for discriminating against qualified individuals • Requires reasonable accommodation unless doing so causes undue

hardship• Disability – physical or mental impairment that substantially limits

one or more major life activities• Reasonable accommodation – making modifications to work

environment so person otherwise qualified can perform essential functions• Essential function – job task, duty, or responsibility that must be done

by person in a job

Family and Medical Leave Act (FMLA) of 1993 Clinton

Employers with 50 or more employees in 75-mile radius must grant up to 12-weeks unpaid leave for• Employee’s own illness• Birth, adoption, or foster care of child• Care of sick member of immediate family

DISCUSSION: Should this be a paid leave?

DISCUSSION: If this act requires paid leave, how will companies pay for this new entitlement?

Uniformed Services Employment and Reemployment Act of 1994 (Clinton)

Purpose:Protect the civilian employment of non-full-time military

personnel in the United States called to active duty. The law applies to all United States uniformed services and their respective reserve components.

Immigration Reform and Control Act of 1996(Clinton)

• Attempt to control unauthorized immigration

• Must verify all employees hired have legal right to work in U.S.

• Employees complete INS Form I-9

• Employers who violate are fined

Lilly Ledbetter Fair Pay Act of 2009(Obama)

The act states that the 180-day statute of limitations for filing an equal-pay lawsuit regarding pay discrimination resets with each new paycheck affected by that discriminatory action.

The law directly addressed a U.S. Supreme Court decision that the statute of limitations for presenting an equal-pay lawsuit begins on the date that the employer makes the initial discriminatory wage decision, not at the date of the most recent paycheck.

EEO and Multinational Employers

• Must follow U.S. EEO laws unless doing so violates law of country in which employees are located (foreign law defense)

• Non-U.S. companies doing business in U.S. must abide by U.S. EEO laws absent binding international agreement or treaty in effect that does not require practice

Reverse Discrimination

Type of discrimination in which members of protected group receive preference in employment decisions, resulting in discrimination against non-protected group

Employment-at-Will

• Provides employers right to terminate (or hire or transfer) employees at any time as long as doing so is not illegal

• Allows employees to quit their jobs at any time or for any reason

• At-will employment disclaimers are a staple of employee handbooks in the United States