OS 352 1/24/08 I. Organizational Justice II. Laws affecting human resource management. III. Federal enforcement of employment laws. IV. Reminders: A. Read Segal article for next time. B. Exercise 1 due next time. Please follow the template on my website and attach the article to your summary.

Organizational Justice Theory Distributive Justice – the perceived fairness of a workplace outcome Procedural Justice – the perceived fairness of a workplace policy, process, or procedure Interactional Justice – the perceived fairness of interpersonal treatment in the workplace, usually by a supervisor Bottom line: treating people fairly will result in better morale and productivity, and reduce dysfunctional behaviors (e.g., theft)

Fair Labor Standards Act (1938) Minimum Wage - $5.85 / hour (July ’07)  $6.55 (July ’08)  $7.25 (July ’09) Note: New York State’s min. wage is $7.15/hr. as of 1/1/07 Overtime Pay – hours > 40 hours / week paid at 1.5 x the regular wage Working Hours for Children – prohibits hazardous work for year-olds, regulates hours for 14 & 15 year-olds

Fair Labor Standards Act (1938) Overtime Pay Changes (August 2004) Earnings test: – Most ees earning less than $455 per week or $23,660 annually are overtime-eligible – Most ees earning $100,000 per year or more are not overtime-eligible

Fair Labor Standards Act (1938) Overtime Pay Changes (August 2004) Duties test: – All blue-collar ees (e.g., production worker), and emergency workers are overtime eligible – Most executives, administrative ees exercising discretion, professional/creative ees, computer professionals and outside salespersons are not overtime eligible. But … to determine with certainty who is eligible or not, a job analysis must be performed at this point.

Equal Pay Act (1963) Prohibits unequal pay for males and females with equal skill, effort, responsibility, and working conditions Women and men must be in same job, and in the same firm, for Act to apply The equal pay gap in the U.S. is about 3%; i.e., women earn about 3% less than men in same job, in same firm, and with the same qualifications.

Title VII of the Civil Rights Act of 1964 Prohibits discrimination in any employment decision on the basis of... racecolor religionsexnational origin Established the Equal Employment Opportunity Commission

Civil Rights Act of 1991 Reinforced discrimination concepts under Civil Rights Act of Provided for punitive damages for Title VII and ADA claims. Maximum punitive damages per case: – $300,000 if er has more than 500 ees. – $50,000 if er has 14 to 100 ees. Extended employment discrimination protection to employees of U.S. companies not in U.S.

Executive Order (1965) Requires federal contractors to adopt an affirmative action plan, including specific numerical goals and timetables for hiring members of “underutilized” groups. Designed to facilitate representation of qualified individuals proportional to their groups’ representation in the relevant labor market. Enforced by the Office of Federal Contract Compliance (OFCCP)

Age Discrimination in Employment Act (1967) Prohibits discrimination based upon age for persons aged 40 and older. Permits mandatory retirement for executives age 65 and older in some cases Sometimes age is a bona-fide occupational qualification (BFOQ) (e.g., pilots)

Pregnancy Discrimination Act (1978) Prohibits discrimination based upon pregnancy status Firms must treat pregnant ees in a manner consistent with other ees Firms cannot design an employee health benefit plan that excludes pregnancy coverage.

Americans with Disabilities Act (1990) Prohibits discrimination on the basis of disability in employment and other areas. Requires “reasonable accommodation” to an otherwise qualified individual with a disability disability... – impairment that substantially limits 1 or more of the major life activities (e.g., permanent blindness) – a record of such impairment (e.g., cancer survivor) – being regarded as having such an impairment (e.g., severe disfigurement)

Family and Medical Leave Act (1993) Permits ees to take up to 12 weeks unpaid leave for... – birth or adoption of child – serious illness of a family member – own serious illness Health benefits must be continued Ee must receive same or equivalent position

Uniformed Services Employment and Reemployment Rights Act (1994) Employers must re-employ workers who leave jobs to fulfill military duties for up to 5 years. Firms must place returning workers in same job with same seniority, status, and pay. Disabled veterans have up to 2 years to recover from injuries received during service.

National Labor Relations Act (1935) Protected ees’ rights to... – form, join, or assist labor organizations – to bargain collectively – to choose their own bargaining representative Identified unfair labor practices by employers (e.g., refusing to bargain)

Who Enforces the Laws? EEOC Equal Employment Opportunity Commission Processes worker complaints from non-federal-contractors Looks for evidence of “systemic violations” OFCCP Office of Federal Contract Compliance Has the power to revoke Federal contracts for noncompliance

Terms You Should Know Organizational justice Distributive justice Procedural justice Interactional justice EEOC OFCCP

You Should be Able To … Understand the relationship between organizational justice and legal requirements. Know the requirements of employment laws affecting the management of people in organizations, including the name and date of the law. Understand the roles of the EEOC and OFCCP in enforcing employment laws.