M.

Najma Qolby (15311262)

M. Husnul Fikri R (15311270)
M. Rinaldi Madani (15311347)

CHAPTER 7
Employment Law
 Organizational Perspective
Federal laws provide penalties for
organizations that violate such laws.
It is an organizational best interest to
hire the most qualified applicant for any
job or to promote the most qualified
individual regardless of factors that do
not impact the individual ability to
perform the job in question.

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 Employment-at-will

Employment relationship should allow either

an employer or an employee right to
terminate their relationship at any time,
without giving the other party prior notice.

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 Scope of Laws

Some exception where individual states can

pass their own additional, supplemental laws
as long as these laws do not violate or
contradict to the federal laws.

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 Federal Antidiscrimination
Laws
Equal Pay Act of 1963
Civil Rights Act of 1964
Age Discrimination in Employment Act of 1967
Rehabilitaion Act of 1973
Preganancy Discrimination Act of 1978
Americans with Disabilities Act of 1990
Civil Rights Act of 1991
Family and Medical Leave Act of 1992
Genetic Information Nondiscrimination Act of 2008

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 Equal Pay Act of 1963
Prohibits wage discrimination based on
gender for jobs that require equal skill, effort,
and responsibility and are performed under
similar working conditions.

Exceptions to equal pay:

1. Bona fide seniority systems
2. Quality of job performance
3. Quantity of output
4. Factors other than sex (gender)

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 Civil Rights Act of 1964
Commonly called as Title VII prohibits
discrimination in employment based on
race, color, religion, sex, and national
origin.

Covers conditions of employment: hiring,

firing, promotion, transfer, compensation,
and admission to training.

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 Age Discrimination in
Employment Act of 1967

Prohibits employment discrimination

against employees who are age 40 or
older.

Prohibits the setting of mandatory

retirement ages except in cases of public
safety.

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 Rehabilitaion Act of 1973
Prohibited discrimination by federal contractors
against handicapped applicants or employees.

Definition of handicapped individuals:

1. Persons with physical or mental impairment
that substantially limits one or more major life
activities.
2. Persons with a history or record of such
impairment.
3. Persons regarded as having such an
impairment.
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 Preganancy Discrimination
Act of 1978
Prohibits employers from discriminating
against pregnant employees by requiring
pregnancy leaves and that pregnancy be
treated as any other medical disability

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 Americans with Disabilities
Act of 1990
Prohibits all employers with 15 or more
employees from discriminating against
handicapped persons.

The Americans with Disabilitis (ADA), the

definition itself taken from the Rehabilitaion Act,
and the ADA retains the Rehabilitaion Act
provisions for being otherwise qualified and
providing reasonable accomodation.

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 Civil Rights Act of 1991
The extended of Title VII which have four
specific provision such as:
1. Extends the protection of Title VII to federal governmet
employees.
2. Allows litigants to sue for compensatory and punitive
damages.
3. Requirer a heavier burden of proof on the part of
employers in rebutting claims of unlawful
discrimminaton.
4. Provides for extraterritorial enforcement of federal
labor laws.

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 Family and medical leave
Act of 1992
Employers to provide up to 12 weeks unpaid leave
for the birth, adoption, or serious ilness of a child,
damily member
Covers organizations with 50 or more employees.
Employee has to have been employed a minimum of
25 hours per week one year, or 1.250 hours in total.
Employees whose salaries are among the highest
10 percent of the employers workforce do not
receive FMLA protection.
 Genetic Information
Nondiscrimination Act of 2008
Genetic discrimination takes place when an individual is
treated unfairly.
A health insurer might refuse to give coverage or charge
a higher premium to a women whose DNA might indicate
a hightened risk for breast cancer.
Employers are probihited from considering any genetic
information they may have about a job applicant or
employee in decisions related to hiring, termination,
disipline, promotion, compensation, or other terms and
conditions of employment.
 Enforcement of Federal Laws
Under the EEDC
Title VII created the EEOC to oversee and enforce
labor laws. Any individual who feels that their rights
under Title VII have been violated may file a
complaint received an all-time record number of
complaints, 99,947. The procedures that are
followed in an EEOC investigation are outlined
after this.
 Executive Orders
Certain employers are required to comply with
excecutive orders.
Excecutive Orders are issued by the president
and apply to all federal agencies and
organizations with federal contracts.
OFCCP actively monitors complience with laws
and excecutive orders instead of waiting for
employees or job applicants to file complaints.
 Sexual Harassment
In 1986, the supreme Court ruled in Meritor
Savings Bank v. Vinson that sexual
harassment constituted a form of sex
discrimination under Title VII To Date, the
majority of sexual harassment cases have
involved situations where a man sexually
harasses a woman who holds a lower or
equal position.
 What is Sexual Harassment
Courts have identified several key concepts
of sexual harassment;
1. An Unwelcome Nature
2. The Nature of the Harassment (Quid pro
quo & hostile environment)
 Problem in Managing Sexual
Harrasment
1. Aware of what sexual harassment is
2. Policy awareness
3. Fear reporting incident
4. Investigatation allegations of sexual
harassment
 Strategies for Managing
Sexual Harassment

1. Investigate all allegations

2. Conduct a thorough and prompt
investigation
3. Ensure that investigator is unbiased,
objective
4. Ensure that no retaliation takes place

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 Strategies for Managing
Sexual Harassment

5. Treat accused employee fairly

6. Have both parties sign written statement
7. Take prompt action and equate
consequences with behavior
8. Have clear, defined process for
investigation

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Trends in Employment
Litigation
Trend away from blatant to subtle
discrimination
The use of electronically produced and
stored evidence
Increasing number of complaints
Employment litigation is the movement
toward employer settlement of charges in
an expenditure manner

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Trends in Employment
Litigation
The use of employment practices liability
insurance (EPLI) by employers to prevent
having to pay large settlements in
discrimination cases

The use of various kinds of language rules

in the workplace

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 Conclusion
Employement law is a key strategic area
for HR, it remains the single area in which
managers throughout organizations are
most uninformed and little prepared to
manage.

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References
Jeffey, A. M. (2015). Strategic human
resource management, Fourth Edition.
Unites States of America : Cengage
Learning

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Q and A
The dissabilities person, as a burden or
not for the company? (Arista, 055)
Person violated by company because
some condition like hijab, its violation?
(Assyifa, 301)
Percentage of target sexual harassment?
(Ivandi, 468)

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Q and A
Where is the Act when the past accident 9/11
happens? (Yoga, 050)
What is the Act talked about, In Indonesia the
regulation of discrimination. Dude the
company give some solution? (Maudiaata,
203)
Clothing apparel, the employee work
overtime cause the appearance are not
suitable with the company. How come such
the company still run? As the ordinary people,
what should we react? (Aulia, 086)
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