978-0134739724 Chapter 3

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CHAPTER 3

EQUAL EMPLOYMENT OPPORTUNITY, AFFIRMATIVE ACTION, AND

WORKFORCE DIVERSITY

CHAPTER OBJECTIVES

3.1 Explain the concept of equal employment opportunity (EEO) and identify the

federal laws affecting EEO

3.2 Discuss who is responsible for ensuring equal employment opportunity

3.3 Define the types of illegal employment discrimination and discuss affirmative

action

3.4 Explain the Uniform Guidelines related to various types of illegal employment

discrimination, including sexual harassment, national origin, religion, and

caregiver (family responsibility) discrimination

3.5 Describe the concept of diversity and diversity management

3.6 Explain the various elements of a diverse workforce

KEY TERMS

Equal Employment Opportunity (EEO): The set of laws and policies that requires all

individuals’ rights to equal opportunity in the workplace, regardless of race, color, sex,

religion, national origin, age, or disability.

Disparate treatment: Employer treats some people less favorably than others because of

race, religion, sex, national origin, or age.

Adverse impact: Takes place when an employment decision, practice or policy has a

disproportionately negative effect on a protected group. Oftentimes, it may be thought of

Affirmative action program (AAP): Approach developed by organizations with

government contracts to demonstrate that workers are employed in proportion to their

representation in the firm’s relevant labor market.

Caregiver (family responsibility) discrimination: Discrimination against employees

based on their obligations to care for family members.

Diversity management: Ensuring that factors are in place to provide for and encourage

the continued development of a diverse workforce by melding these actual and perceived

differences among workers to achieve maximum productivity.

Glass ceiling: Invisible barrier in organizations that prevents many women and

minorities from career advancement.

Dual-career family: A situation in which both spouses or partners have jobs and family

responsibilities.

Baby boomers: People born just after World War II through the mid-1960s.

Generation X: Label affixed to the approximately 41 million U.S. workers born between

the mid-1960s and late 1970s.

Generation Y: Comprises people born between the late 1970s and mid-1990s.

Generation Z or Digital Natives: Internet-assimilated children born between 1995 and

2009.

LECTURE OUTLINE

EQUAL EMPLOYMENT OPPORTUNITY and the FEDERAL LAWS

AFFECTING EEO

The concept of equal employment opportunity has undergone much modification and

occupational qualifications, bona fide seniority and merit systems, and testing and

educational requirements.

● EQUAL PAY ACT OF 1963, AMENDED IN 1972—Prohibits an employer

from paying women less money than men if both employees do work that is

substantially the same. There are four exceptions that permit unequal pay for

equal work: seniority systems, merit systems, systems that measure earnings by

quality of production, any other factor other than sex.

● LILLY LEDBETTER FAIR PAY ACT OF 2009—In order to reverse the

Ledbetter Supreme Court decision, the Lilly Ledbetter Fair Pay Act was passed in

2009. The Fair Pay Act amends Title VII of the Civil Rights Act of 1964 by

effectively overturning a portion of the Supreme Court’s decision in Ledbetter v

Goodyear Tire and Rubber Company, Inc., and thereby modifying the manner in

which the time limits are calculated for filing claims of compensation

1964. Disparate impact occurs when certain actions in the employment

process work to the disadvantage of members of protected groups.

● To respond to decisions of the Supreme Court by expanding the scope of

relevant civil rights statutes in order to provide adequate protection to

victims of discrimination.

● AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967—AMENDED

IN 1978, 1986, and 1990—Prohibits discrimination against anyone who is age

forty and older.

● AGE CAN ACTUALLY BE A BONA FIDE OCCUPATIONAL

QUALIFICATION—Age can actually be a bona fide occupational qualification

where it is reasonably necessary to the essence of the business, and the employer

has a rational or factual basis for believing that all, or substantially all, people

within the age class would not be able to perform satisfactorily.

● VIETNAM ERA VETERANS’ READJUSTMENT ASSISTANCE ACT OF

1974, AS AMENDED—Now the definition of “protected” or “covered” veteran

has been expanded to include those who have served in a campaign or expedition

for which a campaign badge was issued. This includes campaigns such as the

current engagements in the Middle East.

● AMERICANS WITH DISABILITIES ACT OF 1990—Prohibits

discrimination against qualified individuals with disabilities. This includes all

employment practices, including job application procedures, hiring, firing,

advancement, compensation, training, and other terms, conditions, and privileges

of employment.

● AMERICANS WITH DISABILITIES ACT AMENDMENTS ACT OF

2008—The ADA Amendments Act expands the definition of “disability” and

many more applicants and employees are eligible for reasonable accommodations.

The ADAAA broadened the ADA’s definition of disability by expanding the term

“major life activities,” doing away with the “substantially limited” requirement

(previously mentioned) for those regarded as having a disability, and overturning

two U.S. Supreme Court decisions that interpreted the ADA’s definition of

disability narrowly.

● IMMIGRATION REFORM AND CONTROL ACT OF 1986—Makes it

illegal for certain employers to fire or refuse to hire a person on the basis of that

person’s national origin or citizenship.

● STATE AND LOCAL LAWS—When EEOC regulations conflict with state or

local civil rights regulations, the legislation more favorable to women and

minorities applies.

WHO’S RESPONSIBLE FOR ENSURING EQUAL EMPLOYMENT

OPPORTUNITY?

The main groups that establish and support EEO include the government and employers.

● EQUAL EMPLOYMENT OPPORTUNITY COMMISSION—Created by

Title VII, the EEOC enforces most of the above mentioned laws. Charges may be

filed by the EEOC or any aggrieved person, or a person acting on behalf of an

aggrieved person. Charges must be filed within 180 days of the alleged act, but

there are exceptions.

ILLEGAL DISCRIMINATION AND AFFIRMATIVE ACTION

Employers should have a basic idea on how the law defines illegal discrimination.

● UNIFORM GUIDELINES ON EMPLOYEE SELECTION

PROCEDURES—The Uniform Guidelines provide a single set of principles that

were designed to assist employers, labor organizations, employment agencies, and

licensing and certification boards in complying with federal prohibitions against

employment practices that discriminate on the basis of race, color, religion,

gender, and national origin.

● TYPES OF UNLAWFUL EMPLOYMENT DISCRIMINATION

● ADVERSE IMPACT—Concept established by the Uniform Guidelines

occurs if women and minorities are not hired at the rate of at least 80

percent of the best-achieving group.

11246.

● An affirmative action program is an approach that an organization with

government contracts develops to demonstrate that workers are employed in

proportion to their representation in the firm’s relevant labor market. An

acceptable AAP must include an analysis of deficiencies in the utilization of

minority groups and women. The first step in conducting a utilization analysis is

UNIFORM GUIDELINES ON PREVENTING SPECIFIC ILLEGAL

EMPLOYMENT DISCRIMINATION

Since the Uniform Guidelines were published in 1978, they have been modified several

times. Some of these changes reflect Supreme Court decisions; others clarify

implementation procedures. The five major changes discussed are the Guidelines on

Sexual Harassment, Guidelines on Discrimination because of National Origin, Guidelines

on Discrimination because of Religion, and Guidelines on Caregiver (Family

reach the U.S. Supreme Court. The Court recognized for the first

time that Title VII could be used for offensive environment claims.

▪ Harris v Forklift Systems, Inc.: Expanded the hostile workplace

concept and made it easier to win sexual harassment claims.

▪ Oncale v Sundowner Offshore Services: Supreme Court held that

same-sex sexual harassment may be unlawful under Title VII.

● GUIDELINES ON DISCRIMINATION BECAUSE OF RELIGION—

Employers have an obligation to accommodate religious practices unless they can

demonstrate a resulting hardship.

● GUIDELINES ON CAREGIVER (FAMILY RESPONSIBILITY)

DISCRIMINATION—Caregiver (family responsibility) discrimination is

discrimination against employees based on their obligations to care for family

members. Recently, the EEOC issued a technical assistance document on how

information about applicant’s’ disabilities before a conditional job offer.

DIVERSITY AND DIVERSITY MANAGEMENT

Sexual harassment was discussed in this chapter only as it pertained to the United States

but it is also a global problem. When individuals from two different cultures interact,

there is a potential for sexual harassment problems. Some behaviors that violate U.S.

actual and perceived differences among workers to achieve maximum

productivity.

ELEMENTS OF THE DIVERSE WORKFORCE

● SINGLE PARENTS AND WORKING MOTHERS—Number of

nontraditional, single-parent households in the United States is growing.

● DUAL-CAREER FAMILIES—Situation in which both spouses or partners have

jobs and family responsibilities. Today, employees have turned down relocations

because of spouses’ or partners’ jobs and concerns about their children. Of the top

three reasons employees turn down assignments, family or spouse/partner career

is cited almost twice as often as concern with the employee’s career or

compensation.

or kind of work a person can do or makes achievement unusually difficult.

Approximately 20 percent of the labor force possesses one or more disabilities.

● IMMIGRANTS—Large numbers of immigrants have settled in many parts of the

United States. It is estimated that 26.3 million foreign-born individuals are in the

U.S. workforce, representing 24.1 percent of the total workforce.

● BABY BOOMERS, GEN X, GEN Y, AND GEN Z—Never in American history

have so many different generations with such different views and attitudes been

asked to work together. There have been tremendous changes since the Boomers

first entered the workforce. Baby boomers were born just after World War II

through the mid-1960s. Generation X is the label affixed to the approximately 41

million American workers born between the mid-1960s and late 1970s.

Generation Y comprises people born between the late 1970s and late 1990s.

Generation Z or Digital Natives were born between 1995 and 2009.

● MULTIGENERATIONAL DIVERSITY—Four generations are now

participating in the workforce with each having its defining characteristics and

nicknames. The concept of generational differences as a legitimate workplace

diversity issue has gained increasing recognition.

● LESBIAN, GAY, BISEXUAL, AND TRANSGENDER EMPLOYEES—There

has been an increased focus in the political and workforce arena with regard to

lesbian, gay, bisexual, and transgender (LGBT) employees. Polls show the public

tends to support equal rights for gay people with the exception of the right to

marry.

ANSWERS TO CHAPTER 3 QUESTIONS FOR REVIEW

3-1. What are the components that combine to make up the present diverse workforce?

Briefly describe each.

● Young persons, some with limited education or skills: A lower labor force

participation rate for young people is being experienced for all young people less

than 24 years of age and not merely young persons with limited education and

skills as was so often the case in the past.

● Baby boomers, Gen X, Gen Y, and Gen Z: Baby boomers were born just after

World War II through the mid-1960s. Generation X is the label affixed to the

approximately 41 million American workers born between the mid-1960s and late

1970s. Generation Y comprises people born between the late 1970s and late

1990s. Generation Z or Digital Natives were born between 1995 and 2009.

● Lesbian, gay, bisexual, and transgender employees: There has been an

increased focus in the political and workforce arena with regard to lesbian, gay,

bisexual, and transgender (LGBT) employees.

3-2. Briefly describe the following laws:

a. Civil Rights Act of 1866

b. Equal Pay Act of 1963

c. Lilly Ledbetter Fair Pay Act of 2009

d. Title VII of the Civil Rights Act of 1964, as amended in 1972

● Civil Rights Act of 1866: Oldest federal legislation affecting staffing is the Civil

Rights Act of 1866, which is based on the Thirteenth Amendment to the U.S.

Constitution. Specifically, this act provides that all citizens have the same right,

“as enjoyed by white citizens . . . to inherit, purchase, . . . hold, and convey . . .

property, [and that] all persons . . . shall have the same right to make and enforce

modifying the manner in which the time limits are calculated for filing claims of

compensation discrimination with the EEOC. The law creates a rolling or open

time frame for filing wage discrimination claims.

● Title VII of the Civil Rights Act of 1964, as Amended in 1972: Prohibits

discrimination based on race, color, sex, religion, or national origin.

1. To provide appropriate remedies for intentional discrimination and

unlawful harassment in the workplace.

2. To codify the concepts of business necessity and job related pronounced

by the Supreme Court in Griggs v Duke Power Company.

3. To conform statutory authority and provide statutory guidelines for the

adjudication of disparate impacts under Title VII of the Civil Rights Act of

1964.

4. To respond to recent decisions of the Supreme Court by expanding the

scope of relevant civil rights statutes in order to provide adequate

protection to victims of discrimination.

Age Discrimination in Employment Act of 1967, as Amended in 1978 and 1986:

Prohibits employers from discriminating against individuals who are age 40 and older.

● Americans with Disabilities Act Amendments Act of 2008: The ADAAA

broadened the ADA’s definition of disability by expanding the term, “major life

activities,” doing away with the, “substantially limited” requirement (previously

mentioned) for those regarded as having a disability, and overturning two U.S.

Supreme Court decisions that interpreted the ADA’s definition of disability

those workers are entitled to return to their civilian employment after completing

their military service.

● Vietnam Era Veterans’ Readjustment Assistance Act of 1974: Relates only to

government contractors or subcontractors who are covered by the OFCCP. It

covered honorably discharged persons who served more than 18 days on active

duty between August 5, 1964 and May 7, 1975. Now the definition of “protected”

or “covered” veteran has been expanded to include those who have served in a

campaign or expedition for which a medal was issued. This includes campaigns

such as Desert Storm and the current engagements in the Middle East.

3.3. Briefly discuss who is responsible for ensuring equal employment opportunity.

● Created by Title VII, the EEOC enforces most of the above mentioned laws.

3.4. What are the significant U.S. Supreme Court decisions that have had an impact on

EEO? On Affirmative Action?

3.5. What are the steps that the EEOC uses once a charge is filed?

(3) other charges against the employer; and (4) the type of charge. Recommendations for

3.6.What is the purpose of the Uniform Guidelines on Employee Selection Procedures?

3.7. What is the difference between disparate treatment and adverse impact?

3.8. How does the EEOC define sexual harassment?

3.9. How does the EEOC interpret the national origin guidelines?

forebears came from, a particular country. National origin protection also covers: (1)

marriage or association with a person of a specific national origin; (2) membership in, or

association with, an organization identified with, or seeking to promote the interests of

national groups; (3) attendance at, or participation in, schools, churches, temples, or

mosques generally used by persons of a national origin group; and (4) use of an

individual’s or spouse’s name that is associated with a national origin group.

3.10. What are some guidelines to follow with regard to religion-related

discrimination?

3.11. What is meant by the term caregiver discrimination?

3.12. What is the purpose of the OFCCP?

3-13. Define what the four-fifths rule is.

According to the Uniform Guidelines, adverse impact is said to occur if, “a substantially

different rate of selection in hiring, promotion or other employment decision which

3-14. What is an affirmative action program?

3.15. Define diversity and diversity management.

Diversity refers to any perceived difference among people: age, race, religion, functional

specialty, profession, sexual orientation, geographic origin, lifestyle, tenure with the

organization or position, and any other perceived difference.

Diversity management is ensuring factors are in place to provide for and encourage the

happened that Ms. Hodge and Mr. Jameson were Baby Boomers, Ms. Diaz was a member

of Generation X, and Ms. Peroni was a member of Generation Y.)

The committee got off to a rocky start, in part, because members disagreed about where

and when to get the work done. Mr. Jameson called for a face-to-face meeting in the

conference room and got the following reactions: Ms. Hodge asked for the time and place

Mr. Jameson expressed frustration, saying, “the flexible approach to getting the work

done is unacceptable! For years, we always completed our committee assignments

together in the conference room.” He went a step further by asserting, “Young mothers

should never be considered for positions of significant responsibility because they are

unreliable and not serious about their work.” Ms. Diaz, visibly upset by Mr. Jameson’s

comment, instructed him to review the company’s telecommuting policy. His response

was, “That policy does nothing other than permit young employees to work only when

they feel like it and for women with children to work less than others.

QUESTIONS

3.23. Do you agree with Mr. Jameson’s approach to addressing situation? Discuss.

3.24. What actions should Mr. Jameson have taken in the past to avoid his current

predicament?

3.25. What might occur if Mr. Jameson tells Ms. Diaz’s supervisor that she is an

unreliable employee?

HRM Incident 2: So, What’s Affirmative Action?

Supreme Construction Company began as a small commercial builder located in

Baytown, Texas. Until the early 2000s, Alex Boyd, Supremes’ founder, concentrated his

efforts on small, freestanding shops and offices. Up to that time, Alex had never

employed more than 15 people.

In 2008, Alex’s son Michael graduated from college with a degree in construction

management and immediately joined the company full-time. Michael had worked on a

variety of Supreme jobs while in school, and Alex felt his son was really cut out for the

construction business. Michael was given increasing responsibility, and the company

continued its success, although with a few more projects and a few more employees than

before. In 2010, Michael approached his father with a proposition; “Let’s get into some

of the bigger projects now. We have the capital to expand and I really believe we can do

it.” Alex approved, and Supreme began doing small shopping centers and multistory

office buildings in addition to work in its traditional area of specialization. Soon, the

number of employees had grown to 75.

In 2013, the National Aeronautics and Space Administration (NASA) released

construction specifications for two aircraft hangars to be built southeast of Houston.

Although Supreme had never done any construction work for the government, Michael

and Alex considered the job within the company’s capabilities. Michael worked up the

$1,982,000 bid and submitted it to the NASA procurement office.

Several weeks later the bids were opened. Supreme had the low bid. However, the

acceptance letter was contingent on submission of a satisfactory affirmative action

program.

QUESTIONS

3.26. Explain why Supreme must submit an affirmative action program.

The bid that Michael submitted was for over $1 million. Contractors meeting this

3.27. Generally, what should the program be designed to accomplish?

3.28. In conducting a utilization analysis, Michael discovers that although 30 percent of

the general population of construction workers is black, only 10 percent of

Supremes’ employees are black. According to affirmative action, what is Supreme

Construction required to do?

Under-utilization is defined as having fewer minorities or women in a particular job

group than would reasonably be expected by their availability. The utilization analysis is

important because the calculations determine whether underutilization exists. If the

utilization analysis shows that the availability of blacks for a certain job group is 30

percent, the organization should have at least 30 percent black employment in that group.

If actual employment is less than 30 percent, underutilization exists, and the firm should

set a goal of 30 percent black employment for that job group. The goal of affirmative

action is for a contractor’s workforce to generally reflect the gender, racial, and ethnic

profile of the labor pools from which the contractor recruits and selects.