The Legal Environment of Human Resources Management

1The Legal Environment of Human Resources Management Chapter 22Learning ObjectivesDefine and describe “employment law:” the legislation directly addressing employer–employee relations.State the importance of the government’s role in establishing legal requirements affecting HR management. 3Learning ObjectivesList and briefly describe significant labor-related legislation enacted in the U.S. by the federal government. Identify the unique issues facing hospitality companies that operate units in countries with legal and cultural systems different from that of the United States. Appraise and appreciate the unique HR-related responsibilities of the hospitality industry unit manager.4Employment LawEmployment Law: The body of laws, administrative rulings, and precedents which addresses the legal rights of workers and their employers.Jurisdiction: The geographic area over which a legal authority extends. 5The Government’s Role in the Management of HRHospitality managers interact with governmental entities in a variety of different ways, and they must observe the procedures and regulations established by the government.Just as the federal government has played and will continue to play an important regulatory role in the hospitality industry, so too do the various state and local governments.6The Government’s Role in the Management of HRUnemployment compensation is primarily operated by the states.Unemployment compensation: A benefit paid to an employee who involuntarily loses his/her employment without just cause7The Government’s Role in the Management of HRWorker’s Compensation: A benefit paid to an employee who suffers a work-related injury or illness.Garnish(ment): A court-ordered method of debt collection in which a portion of a worker’s income is paid directly to one or more of that worker’s creditors.8A Manager’s Review of Significant Employment LegislationOne good way to examine significant federal legislation related to human resource management is to view them as being enacted before, or after, the landmark Civil Rights Act 1964.9A Manager’s Review of Significant Employment LegislationThe Clayton Act of 1914 legitimized and protected workers’ rights to join labor unions.Labor union: An organization that acts on behalf of its members to negotiate with management about wages, hours, and other terms and conditions of their membership’s employment.10A Manager’s Review of Significant Employment LegislationRailway Labor Act of 1926 required employers to bargain with unions and prohibited discrimination against union members. Interstate Commerce: Commercial trading or the transportation of persons or property between or among states.11A Manager’s Review of Significant Employment LegislationWagner Act of 1935 prohibited employers from:Interfering with the formation of a unionRestraining employees from exercising their right to join a unionImposing any special conditions on employment that would discourage union membership12A Manager’s Review of Significant Employment LegislationWagner Act of 1935 prohibited employers from: (cont.) Discharging or discriminating against employees who reported unfair labor practicesRefusing to bargain in good faith with legitimate union leadership13A Manager’s Review of Significant Employment LegislationFair Labor Standards Act of 1938 eliminated labor conditions deemed “detrimental to the maintenance of the minimum standards of living necessary for health, efficiency and well-being of workers.” 14A Manager’s Review of Significant Employment LegislationThe Fair Labor Standards Act of 1938Requires employers to pay overtime for hours worked in excess of 40 per week (defined as 7 consecutive 24 hour periods)Set standards for child labor15A Manager’s Review of Significant Employment LegislationThe Equal Pay Act of 1963 Prohibits employers from paying women and men different wages when the work performed requires equal skill, effort, and responsibility, and is performed under similar working conditions16A Manager’s Review of Significant Employment LegislationThe Civil Rights Act of 1964In June 1964, Congress passed the Civil Rights Act of 1964.It was the most important piece of civil rights legislation in the nation’s history.On July 2, 1964, President Johnson signed it into law.17A Manager’s Review of Significant Employment LegislationThe Civil Rights Act of 1964 outlaws discrimination based on:RaceColorReligionSexNational origin18A Manager’s Review of Significant Employment LegislationThe Civil Rights Act of 1964Title VII: The specific section of the Civil Rights Act of 1964 that outlaws discrimination in employment in any business on the basis of race, color, religion, sex, or national origin.19A Manager’s Review of Significant Employment LegislationThe Civil Rights Act of 1964Equal Employment Opportunity Commission (EEOC): The entity within the Federal government assigned to enforcing the provisions of Title VII of the Civil Rights Act of 1964.20A Manager’s Review of Significant Employment LegislationThe Civil Rights Act of 1964 prohibits sexual harassment. Sexual Harassment: Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature.21A Manager’s Review of Significant Employment LegislationThe Civil Rights Act of 1964 mandates affirmative action in some cases. Affirmative Action: A Federally mandated requirement that employers who meet certain criteria must actively seek to fairly employ recognized classes of workers.22A Manager’s Review of Significant Employment LegislationThe Civil Rights Act of 1964Is expanded to prohibit discrimination based on:PregnancyAgeDisability23A Manager’s Review of Significant Employment LegislationThe Civil Rights Act of 1964 allows discrimination under some BFOQs.(BFOQ): Bona Fide occupational qualification: A specific job requirement for a particular position reasonably necessary to the normal operation of a business, and thus allowing discrimination against a protected class.24A Manager’s Review of Significant Employment LegislationDisparate treatment: The claim that, in the same situation, one employee was treated differently than other employees in the same situation.Disparate impact: The claim that an employer’s action, though not intentionally discriminatory, still results in unlawful discrimination. Also known as adverse impact.25A Manager’s Review of Significant Employment LegislationThe Age Discrimination in Employment Act of 1967Initially passed to prevent the widespread practice (at that time) of requiring employees to retire at age 65.26A Manager’s Review of Significant Employment LegislationThe Pregnancy Discrimination Act of 1978 made discrimination on the basis of pregnancy, childbirth, or related medical conditions unlawful sex discrimination under Title VII.27A Manager’s Review of Significant Employment LegislationThe Americans with Disabilities Act of 1990 mandates reasonable accommodation.Reasonable Accommodation: Any modification or adjustment to a job or the work environment that will enable a qualified applicant or employee with a disability to participate in the application process or to perform the job’s essential functions.28A Manager’s Review of Significant Employment LegislationThe Americans with Disabilities Act of 1990 definition of disability includes:AIDS CancerCerebral palsyTuberculosisHeart diseaseHearing or visual impairmentsAlcoholism29A Manager’s Review of Significant Employment LegislationThe Family Medical Leave Act of 1993 allows an employee to take unpaid leave due to pregnancy, illness, or to care for a sick family member.30A Manager’s Review of Significant Employment LegislationThe Lilly Ledbetter Fair Pay Act of 2009 changes the statute of limitations on charges of equal-pay violations from 180 days of its first occurrence (per the Civil Rights Act) to 180 days from the issuance of each worker paycheck resulting from the discriminatory act.31A Manager’s Review of Significant Employment LegislationThe Patient Protection and Affordable Care Act of 2010 (Obama care);Guaranteed the ability of all individuals to obtain healthcare coverage regardless of their pre-existing health conditions.Mandated that all employees not covered by a health insurance plan at work must purchase individual health care coverage.32A Manager’s Review of Significant Employment LegislationThe Patient Protection and Affordable Care Act of 2010 (Obama care); (cont.)Provides health insurance cost subsidies for low income individuals and families.Bans annual and lifetime caps on insurance coverage for all individuals.Provides tax incentives for small businesses that provide health coverage for their workers and pay at least 50% of cost of the coverage.33A Manager’s Review of Significant Employment LegislationThe Patient Protection and Affordable Care Act of 2010 (Obama care); (cont.)Fines employers who do not provide adequate health coverage to their full-time employees (currently defined as those who work over 30 hours per week or 130 hours per month).34A Manager’s Review of Significant Employment LegislationThe Patient Protection and Affordable Care Act of 2010 (Obama care); (cont.)Mandates individual coverage. Exceptions to the mandate include undocumented immigrants, members of Native American tribes, members of religious orders and those who cannot afford insurance.35The International Legal Environment for Multinational Hospitality CompaniesExpatriate Manager: a citizen of one country who is a working manager in another country.Special International HR Concerns:Accrued vacation timeQuality of trainingAvailability of qualified numbers of employeesEmployee and management attitudes toward gender equality, appropriate dress, work ethic, religious tolerance, and the rights of minorities36The Special Role of the Hospitality Unit ManagerThe unit manager is the primary HR expert in many operations.Unit Manager: The individual with the final on-site decision-making authority at an individual hospitality operation.37The Special Role of the Hospitality Unit ManagerWays to keep up-to-date on constantly changing national, state, and local legislation include:Reading hospitality industry journals and publicationsReviewing franchisors updatesStaying involved in hospitality trade associationsConsulting chambers of commerce, business trade associations, and police, fire and building officials