1. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-1 The Legal Environment of Business A Critical Thinking Approach 5 th Edition Nancy K. Kubasek Bartley A. Brennan M. Neil Browne

2. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-2 THE LEGAL ENVIRONMENT OF BUSINESS CHAPTER 20 Employment Discrimination

3. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-3 Employment-at-Will  Doctrine rooted in industrial, capitalist economy  Employer’s right to terminate  At any time  For any reason  For no reason  Even for a ‘bad’ reason

4. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-4 Employment-at-Will  Employee’s right to terminate provides a nominal ‘balance’.  Realistically, however, the doctrine favors employers.  Nonstatutory limitations on employer:  Contract: express or implied  Public policy  Implied covenant of good faith and fair dealing

5. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-5 Employment-at-Will  A common law doctrine  Varies considerably from state to state NOTE: Employment-at-will is the ‘default’ starting point for analysis of any U.S. case.

6. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-6 Constitutional Provisions Inadequate to prevent unequal treatment under variable state laws Antidiscrimination: Fifth, Thirteenth, Fourteenth, Amendments

7. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-7 Civil Rights Acts of 1866 and 1871  Effectuates Thirteenth Amendment  Applied to race  Court free to craft damages  No administrative procedures

8. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-8 Equal Pay Act of 1963  Amended the FLSA  Establishes ‘equal pay for equal work’  Equal work:  Establishment: one or more  Defenses:  Remedies: back pay, attorney fees  skill  effort  responsibility  conditions  seniority  merit  output  other

9. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-9 Title VII of the Civil Rights Act of 1964 and the Civil Rights Act of 1991  Prohibits discrimination in terms and conditions of employment  Protected classes:  race,  color,  religion,  sex, or  national origin

10. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-10 Application of Title VII  15 or more employees  20 weeks  Interstate commerce  Employer broadly defined

11. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-11 Employment Discrimination Cases Disparate Treatment  Defendant discriminates overtly against all members of protected class. Disparate Impact  Defendant’s apparently nondiscriminatory practices result in a disproportionately heavy impact on protected class.

12. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-12 Employment Discrimination Cases Harassment cases  Quid pro quo: sexual favors demanded by superior in exchange for job benefits  Hostile environment: conduct that creates an abusive work environment for member of protected class  Test: ‘reasonable person’ test

13. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-13 Settled Issues  Company may be liable for discriminatory acts of employee.  Defendant is not liable for every comment or act of minimal nature and degree.  Plaintiff need not show severe psychological harm.  Plaintiff may recover even when no detrimental job consequences are present.  Same sex harassment is actionable.

14. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-14 Statutory Defenses  Merit  Seniority systems  Mixed motives  Bona fide occupational qualification

15. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-15 Protected Classes  Race and color  National origin  Religion  Sex  Pregnancy Discrimination Act

16. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-16 Remedies  Back pay for up to two years  Remedial seniority  Compensatory and punitive damages  Attorneys’ fees

17. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-17 Age Discrimination in Employment Act of 1967  Applies to workers age 40 or older  Firm of 20 or more employees  Otherwise qualified for job  Termination raises interference of discrimination

18. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-18 ADEA Defenses  BFOQ defense  Other defenses  Bona fide seniority system  Reasonable factors other than age  Executive exemption  After-acquired evidence of employee misconduct

19. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-19 ADEA Enforcement and Remedies  File charges with EEOC or state agency  Private action  Liquidated damages: back pay for two years  Damages  Compensatory damages  Punitive damages may be available

20. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-20 Rehabilitation Act of 1973  Protects handicapped workers against employment discrimination  Handicap is defined term: “major life activities” standard  Applies only to federal government and employers with federal contracts

21. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-21 Americans with Disabilities Act 1991  Applies to employers with 15 or more workers  Requires “reasonable accommodation”  “Otherwise qualified” workers protected  Current drug or alcohol abusers not protected  Mental disabilities especially difficult area.  Intellectual disability

22. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-22 ADA Enforcement and Remedies  Follows Title VII and EEOC approach  Remedies  reinstatement;  back pay;  injunction;  compensatory  punitive damages in some cases  Fines up to $100,000

23. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-23 Affirmative Action  Intended to correct effects of past discrimination  Recently attacked on the theory of reverse discrimination  Challenged in major lawsuits in the areas of school admissions, employment, and contracting  EEOC guidelines provide help for employers

24. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-24 Global Dimensions  Extraterritorial application of U.S. laws limited  U.S. citizens working overseas for U.S. corporations are covered by Title VII, ADA, ADEA  Issue: What is a U.S. company?  EEOC: several factors to be considered:  interrelation of operations  common management  centralized labor relations  common ownership or financial control

25. THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing as Prentice Hall Ch. 20-25 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall