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Bauer, Human Resource Management
SAGE Publishing, 2020
Lecture Notes
Chapter 4: Diversity, Inclusion, and the Equal Employment Laws
Learning Objectives
4.2. Identify major U.S. laws pertaining to equal employment opportunity and how they apply to
various kinds of employment decisions.
4.3. Discuss the impact of Title VII of the Civil Rights Act.
Chapter Summary
This chapter aims to discuss the basics of diversity management and the legal landscape relating to
diversity management. The chapter begins with an overview on the challenges and benefits of managing
diversity effectively. Then, an overview of Equal Employment Opportunity laws is addressed. Specific
Annotated Chapter Outline
I. Introduction
A. Diversity: real or perceived differences among people with respect to sex, race,
that may affect their interactions with others
II. Challenges and Benefits of Managing Diversity Effectively: there is a business case for
diversity and difficulties in achieving a truly diverse workplace
A. Is Diversity Beneficial for Work Groups and Organizations?
i. Diversifying a group is no guarantee for immediate success
ii. Diversity’s potential is unlocked when diversity is accompanied by inclusion
a. Inclusive environments: organizations or groups in which individuals,
regardless of their background, are treated with dignity and respect, are
Bauer, Human Resource Management
SAGE Publishing, 2020
iv. Effects on firm reputation and performance
a. Study of Fortune 500 companies
B. Why Is Diversity and Inclusion Still a Challenge to Achieve?
i. Organizations are starting to design systems that seek to prevent biases from
affecting HR decisions
ii. Similarity-attraction
a. Similarity-attraction hypothesis: tendency of individuals to prefer
others who are similar to them
iii. Stereotypes and unconscious biases
a. Stereotypes: simplified and generalized assumptions about a particular
group
a. Implicit versus explicit
III. An Overview of Equal Employment Opportunity Laws
A. Factors that make diversity-related legal issues complicated
i. Dynamic and constantly changing legal landscape
ii. Federal, state, and municipality laws, and presidential executive orders
B. Equal Employment Opportunity Commission (EEOC): independent federal agency that
C. Office of Federal Contract Compliance Programs (OFCCP): a division of the Department
of Labor that monitors EEO compliance of federal contractors
D. EEO laws
i. Apply to organizations with 15 or more employees
Bauer, Human Resource Management
SAGE Publishing, 2020
E. Equal Pay Act of 1963 (EPA)
i. Concern for gender disparity in pay
ii. To make the claim:
a. They and another employee are working in the same place doing equal
work
IV. Title VII of the Civil Rights Act
A. Applies to all employers with 15 or more employees including state and government
institutions
B. Prohibits employment decisions based on sex, race, color, national origin, and religion
G. Punitive damages: awarded if it is demonstrated that the company had engaged in
reckless discrimination and failed to act in good faith
H. Class action lawsuit: group of individuals who have similar claims suing as a group
I. What is discrimination under Title VII?
i. Disparate treatment: treating different groups of applicants or employees
differently because of their race, color, religion, sex, or national origin
ii. What Should Organizations Do To Proactively Defend Themselves Against
Disparate Treatment Claims?
a. Show there was a nondiscriminatory reason for the adverse action
Bauer, Human Resource Management
SAGE Publishing, 2020
iii. Disparate impact: neutral criteria that have a discriminatory effect on a
protected group
a. City of Chicago and physical performance test for paramedics
b. Plaintiff may not claim compensatory and punitive damages
iv. Title VII and harassment
a. Harassment: unwelcome behaviors based on sex, race, religion, national
origin, and other protected characteristics
v. Title VII and special considerations regarding sex discrimination
a. Comparison and contrast to the Equal Pay Act
vi. Title VII, race, and color
V. Additional Anti-Discrimination Acts and Protections
A. Pregnancy Discrimination Act (PDA) of 1987
i. Prohibits employers from discriminating against employees due to a pregnancy
or related conditions
ii. Young v. UPS
Bauer, Human Resource Management
SAGE Publishing, 2020
D. Genetic Information Nondiscrimination Act (GINA)2008
E. Lilly Ledbetter Fair Pay Act of 2009
F. Protections for LGBTQ Workers
i. Evolving field of legal protections
VI. Diversity and Inclusion in the Age of People Analytics
A. Should Companies Use Affirmative Action?
i. Affirmative Action Plans (AAPs)
ii. Myths about affirmative action
B. How to Comply with EEO Regulations
i. Training decision makers
C. Internal Complaint Mechanisms
D. Diversity Initiatives
i. Unconscious bias training
E. Big Data as a Pathway to Increasing Diversity and Inclusion
i. People analytics
F. Internal Audits
i. Importance of top-management commitment
G. Big Data and Legal Compliance
i. Predictive analytics and employee selection
a. Drawbacks of considering big data as more objective and unbiased
