The Legal and Ethical Environment of Human Resources

I. Legal Compliance in Corporate Staffing

A. The Nature of the Employment Relationship

1. Employees

2. Independent Contractors

a. Tests Used by the IRS

3. Temporary Employees

B. Laws and Regulations

1. Need for Laws and Regulations

2. Sources of Laws and Regulations

C. EEO/AA: Preliminary Issues and Overview

1. Quotas

2. Disparate Impact and Disparate Treatment

3. General Provisions of EEO/AA laws

4. Enforcement

a. EEOC

b. Office of Federal Contract Compliance Programs, U.S. Dept. of Labor

c. Private Actions

D. Key Federal Employment Statutes/Orders

1. Civil Rights Act (1964, 1991)

2. Age Discrimination in Employment Act (1967)

3. Americans with Disabilities Act (1990)

4. Rehabilitation Act (1973)

5. Executive Order 11246 (1965)

E. EEO/AA: Regulations and Information

1. Regulations and Guidelines

2. Information Sources

3. EEO Best Practice Criteria

4. EEO Best Practice Examples

F. Other Human Resources Laws

1. Federal Laws

2. State and Local Laws

3. Civil Service Laws and Regulations

II. Ethical Challenges for the Human Resources Professional

A. Ethics Initiative with Separate Ethics Function Outside of HR

B. Giving Employees Guidance on Ethical Interpretations or Employee Misconduct

C. Blurring the Boundaries Between the Rightful Concern of the Ethics Office and the HR Professional

1. Handling questions directed to them, but better answered by the ethics office staff.

2. Cases where the ethics office staff provided guidance that contradicts HR policy or positions.

3. Cases where ethics staff override directions or guidance from HR.

D. Compounding the Situation: Ineffective in Protecting the Confidentiality of Employee-Specific Information.

E. Code of Ethics

1. Maintain the highest standards of professional and personal conduct.

2. Strive for personal growth in the field of Human Resource Management.

3. Support the Association's Goals and Objectives for developing the Human Resource Management Profession.

4. Encourage my employer to make the fair and equitable treatment of all employees a primary concern.

5. Strive to make my employer profitable both in monetary terms and through the support and encouragement of effective employment practices.

6. Improve public understanding of the role of Human Resource Management.

7. Instill in the employees and the public a sense of confidence about the conduct and intentions of my employer.

8. Maintain loyalty to my employer and pursue its objective in ways that are consistent with the public interest.

9. Uphold all laws and regulations relating to my employer's activities.

10. Refrain from using my official positions, either regular or volunteer, to secure special privilege, gain or benefit for myself.

11. Maintain the confidentiality of privileged information.

III. PROTECTING EMPLOYEES FROM STATUS DISCRIMINATION................................................................................ 1

Paradigms for Status Discrimination............................................................................................................................................ 1

A. Introduction.............................................................................................................................. 1

B. Proving Individual Disparate Treatment............................................................................... 2

C. Proving Systemic Disparate Treatment................................................................................ 10

D. Proving Unjustified Disparate Impact (DI).......................................................................... 13

PROCEDURE for DI Case: ........................................................................................... 21

Establishing BUSINESS NECESSITY (BN): .............................................................. 21

F. Other Federal Causes of Action against Status Discrimination........................................ 27

1. The Constitutional Promise of Equal Protection:................................................ 27

2. 42 USC § 1981 - race discrimination only, not sex discrim.................................. 29

IV. THE STATUS OF SENIORITY UNDER TITLE VII........................................................................................................... 29

A. Introduction............................................................................................................................. 30

B. The Impact of Title VII Remedies on Seniority.................................................................... 30

C. Direct Title VII Challenges to Seniority Systems................................................................ 31

V. AFFIRMATIVE ACTION...................................................................................................................... 32

A. Introduction............................................................................................................................. 32

B. Judicially Ordered AA............................................................................................................. 32

C. Voluntary Affirmative Action (AA)...................................................................................... 34

1. The Constitutional Standard................................................................................... 34

2. THE Title VII STANDARD.................................................................................... 35

3. EXECUTIVE or CONGRESSIONALLY Ordered Affirmative Action................ 38

VI. SPECIAL ISSUES ASSOCIATED WITH SEX DISCRIMINATION.............................................. 39

A. Introduction - Title VII applies with equal force to gender as to race............................ 39

B. Sex-based Pension Funding: The problem of Rational Discriminatory Prediction....... 39

C. Pregnancy and Fertility........................................................................................................... 40

D. The Bona Fide Occupational Qualification Defense (BFOQ)........................................... 42

E. Sexual Harassment................................................................................................................... 44

F. Compensation Disparities....................................................................................................... 45

2. Title VII and Comparable Worth............................................................................ 47

VII. AGE DISCRIMINATION: I. ADEA................................................................................................ 48

A. DISPARATE TREATMENT................................................................................................... 49

2. Age as a BFOQ:......................................................................................................... 50

3. Systemic disparate treatment................................................................................... 50

B. DISPARATE IMPACT (DI) ADEA - No S.Ct. case finding DI under ADEA yet........... 51

C. BENEFITS (ERISA) 29 U.S.C. § 1800 et seq......................................................................... 52

D. RETIREMENT........................................................................................................................... 52

E. WAIVER..................................................................................................................................... 54

VIII. DISABILITY DISCRIMINATION...................................................................................................... 55

A. DUTY OF REASONABLE ACCOMMODATION............................................................... 55

2. DISCRIMINATION................................................................................................................... 56

IX. RELIGIOUS DISCRIMINATION........................................................................................................... 58

A. Title VII Aspect........................................................................................................................ 58

B. CONSTITUTIONAL SETTING AND RELIGIOUS DISCRIMINATION........................... 59

X. OUR FRIEND THE FIRST AMENDMENT AND ITS PROTECTION OF EE EXPRESSION AND ASSOCIATION.......................................................................................................................................................................... 61

A. Free speech and Public Employment: Public EEs are not treated the same as private EEs under the law. .......................................................................................................................................................... 61

B. Free Association and Public Employment:........................................................................... 63

XI. EMPLOYER RETALIATION AGAINST THE ASSERTION OF EE RIGHTS................................ 63

A. Express Anti-retaliation Provisions....................................................................................... 63

B. Implied Antiretaliation Provisions.......................................................................................... 65

XII. DISCHARGE IN VIOLATION OF PUBLIC POLICY......................................................................... 65

A. EEs Public Obligations............................................................................................................ 65

B. EEs Refusal To Perform Illegal, Unethical Or Deleterious Work....................................... 66

C. Whistleblowers......................................................................................................................... 67

D. EE Assertion Of Political Freedom......................................................................................... 67

XIII. PROTECTION FROM ARBITRARY OR INTRUSIVE DECISION MAKING.............................. 67

A. Private Sector Arbitration: Requirement of Just Cause for Discharge:............................ 68

ARBITRATION CASES............................................................................................................... 69

B. Public Sector Safeguards: Procedural Due Process............................................................. 69

C. EMPLOYMENT AT WILL IN THE PRIVATE SECTOR:.................................................... 70

1. Personnel manuals and EE handbooks:................................................................. 71

2. Express And Implied Oral Contracts For Employment:........................................ 72

3. Implied Covenant Of Good Faith And Fair Dealing (GF&FD)............................ 73

4. Tort Theories of Recovery - courts begin retreat................................................ 74

D. Wrongful Discharge Legislation:........................................................................................... 75

XIV. CONSTITUTIONAL RIGHT TO PRIVACY IN THE EMPLOYMENT SETTING........................ 76

A. Public EEs.................................................................................................................................. 76

B. Private EEs................................................................................................................................. 77

MICHAEL A. S. GUTH, Ph.D., J.D. Professor of Financial Economics and Law send e-mail (E-mail is quickest method of contact).   116 Oklahoma Ave.   Oak Ridge, TN   37830-8604   Phone: (865) 483-8309

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