CHAPTER 13
EMPLOYEES RIGHTS AND DISCIPLINE
CHAPTER OUTLINE
13.1 Employee Rights and Privacy
13.1b Negligent Hiring
13.1d Privacy Rights
13.2 Disciplinary Policies and Procedures
13.2b Setting Organizational Rules
13.2d Approaches to Disciplinary Action
13.2f Alternative Dispute Resolution Procedures
13.3 Managerial Ethics in Employee Relations
LEARNING OUTCOMES
After studying this chapter, students should be able to:
2. Identify and explain what the privacy rights of employees are.
4. Identify the different types of alternative dispute resolution methods.
GENERATING INTEREST
Refer to Figure 13.10, “Common Disciplinary Problems.” Ask students to volunteer in a
work-related example—not using any names—from each of the four categories
(attendance problems, dishonesty and related problems, work performance problems, and
on-the-job behavior problems) that they have observed or been involved in as the
supervisor.
• For each example, identify the gender and approximate age of the employee and
his or her supervisor who handled the disciplinary issue.
• Briefly describe the background of the disciplinary issue.
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Implied Contract
Under certain conditions employees may be granted contractual employment
rights such as the promise of job security. To avoid implied contract lawsuits, HR
experts recommend the following approaches:
• Train supervisors and managers not to imply contract benefits.
• Include in employment offers a statement that an employee may
Explicit Contracts
Explicit employment contracts are formal written signed agreements that grant to
employees and employers agreed-upon employment benefits and privileges.
Restrictions can be applied:
• Nondisclosure of information agreement
Constructive Discharge
Constructive discharge is an employee’s voluntary termination of his or her
employment because of harsh, unreasonable employment conditions placed on the
individual by the employer.
Discharge as a Result of Retaliation
Employers cannot retaliate against employees who exercise their rights, including
civil rights, age discrimination, and ADA rights. To prevent retaliation charges,
employers can take the following actions:
• Implement a separate anti-retaliation policy and train managers to resolve
employee complaints.
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Discharges and the WARN Act
The Worker Adjustment and Retraining Notification (WARN) Act requires
13.1d Privacy Rights
The right of privacy is the freedom from unwarranted government or business
intrusion into an individual’s personal affairs.
Teaching Tip: Use Figure 13.4 to discuss balancing an employee’s right to privacy versus an
employer’s right to monitor an employee.
Substance Abuse and Drug Testing
State and federal regulations restrict drug testing. Drug testing is most prevalent
among employees in sensitive positions within the public sector, in organizations
Criticisms of drug testing include the following:
• Studies have not proven that drug testing makes the workplace safer.
• Alcohol appears to create more problems than drugs.
• Drug tests may be positive long after the drug’s influence has worn off.
Teaching Tip: Use Figure 13.5 to discuss individual recommendations for keeping a workplace free of
drugs.
Impairment Testing
Impairment testing (also called fitness-for-duty or performance-based testing)
measures whether an employee is alert enough to work. Advantages of
impairment testing are its focus on workplace conduct and its ability to identify
employees who are impaired for other reasons.
EOC Discussion Question #2: What are the legislative and court restrictions on employer drug
testing in both the private and the public sectors?
13.1e Digital Surveillance
Employers use surveillance and other technology to watch employees to prevent
employee theft, monitor quality control, ensure the safety of employees, and
eliminate time wasted.
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Camera Surveillance
In general, employers can use camera surveillance on their employees if they have
a legitimate business reason and they inform employees of the surveillance. States
may set their own regulations.
Email, Internet, and Computer Use
Court rulings have limited an employer’s right to monitor email communications
their employees send from work computers. More companies are banning social
media at work. Companies can legally create electronic communication policies
that limit employees’ Internet use.
Teaching Tip: Use Figure 13.6 to discuss the use of social media at work. Ask students about their
own use of social media at a job.
Video Highlight #1: Section 13.1e: Digital Surveillance
VIDEO: New Ways Your Boss Could Be Keeping Tabs on You (3:44)
Searches
Random searches of employees’ personal belongings without probable cause
should be avoided. A firm that wants to conduct searches should have a written
plan to inform employees of their policies:
• Search policy should be outlined in the employee handbook.
• Searches should be conducted in private.
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Access to Personnel Files
Employers have a wealth of personal information about their employees. The HR
department is almost always responsible for maintaining and safeguarding the
information. Federal legislation and state laws permit employees to inspect their
own personnel files.
Teaching Tip: Use Figure 13.7 to discuss guidelines for safeguarding personnel files.
Off-Duty Employee Conduct
Some state laws prohibit employers from disciplining or firing employees for
legal activities pursued offsite on their own time.
Off-Duty Employee Speech
Some organizations have social networking and blogging policies that restrict
Workplace Romances
Workplace romances can have many bad repercussions.
Teaching Tip: Use Figure 13.8 to discuss why workplace romance is often a bad idea.
Body Art, Grooming, and Attire
Employers have the right to establish reasonable standards for grooming, attire,
tattoos, and facial piercings, and to require employees to follow those standards.
Video Highlight #2: Section 13.1e: Digital Surveillance
VIDEO: Starbucks Rethinking Visible Tattoo Ban for Employees (1:56)
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Discussion Starter #2: Explain three areas in which employee rights and employer responsibilities
could result in conflict. How might this conflict arise?
ANSWER: Drug testing, email usage, and employee searches and surveillance are three prominent
areas where employee rights and employer responsibilities can come into conflict. Other areas could
EOC Discussion Question #1: Explain three areas in which employee rights and employer
responsibilities could result in conflict. How might this conflict arise?
13.2 Disciplinary Policies and Procedures
Discipline is a tool used to correct and mold the practices of employees to help them
13.2a The Result of Inaction
Failing to discipline employees can result in more serious problems that must be
13.2b Setting Organizational Rules
Rules are the foundation for an effective disciplinary system. Adopting and
implementing rules should comply with the following guidelines:
• Rules must be reasonable and related to the organization.
• The rules and the consequences for breaking them should be written and
13.2c Investigating a Disciplinary Problem
Disciplining an employee should not be done lightly.
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Teaching Tip: Use Figure 13.12 to discuss questions that should be considered during disciplinary
investigations. Ask students to describe the purpose of these questions.
Documenting Misconduct
Misconduct should be documented to deal with any consequences that may arise
such as arbitration hearings and court proceedings. Documentation should include
the following items:
• The date, time, and location of the incident(s)
• The behavior exhibited by the employee (the problem)
• The consequences of that action or behavior on the employee’s overall
Discussion Starter #3: Discuss why documentation is so important to the disciplinary process. What
constitutes correct documentation?
ANSWER: When a manager fails to record the misconduct of employees, it can undermine a firm’s
efforts to deal with the behavior. A manager’s records of employee misconduct are considered
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Due Process
Due process is procedures that constitute fair treatment, such as allowing an
employee to tell his or her story about an alleged infraction and defend against it.
13.2f Alternative Dispute Resolution Procedures
Alternative dispute resolution (ADR) is a term applied to different employee
complaint or dispute resolution methods that do not involve going to court.
Addressing claims outside of court is generally faster and cheaper.
Step-Review Systems
A step-review system is a system for reviewing employee complaints and
disputes by successively higher levels of management. It generally follows the
union grievance system.
Peer-Review Systems
Ombudsman System
An ombudsman is a designated individual from whom employees may seek
counsel for resolution of their complaints. Because the ombudsman has no
authority to finalize a solution, compromises are likely.
Mediation
Mediation is the use of an impartial neutral to reach a compromise decision in
Teaching Tip: Use Figure 13.14 to discuss how mediation can be the key to success.
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Arbitration
In arbitration, the employee and employer present their cases to an arbiter, who is
typically a retired judge. The judge then makes a decision that the parties have
agreed to be bound by. It is used primarily to resolve discrimination suits.
EOC Discussion Question #4: What do you think would constitute an effective alternative
dispute resolution system? What benefits would you expect from such a system? If you were
13.3 Managerial Ethics in Employee Relations
Ethics is a set of standards of conduct and moral judgements that help to determine right
ANSWERS TO END-OF-CHAPTER DISCUSSION QUESTIONS
1. Drug testing, email usage, and employee searches and surveillance are three prominent
areas where employee rights and employer responsibilities can come into conflict. Other
areas could include genetic testing and off-duty conduct. Conflict can arise between
2. Federal regulations and laws restrict drug testing as well. The Equal Employment
Opportunity Commission does not allow job applicants to be tested before they are
extended offers. The Americans with Disabilities Act protects employees who have been
addicted to drugs and are recovering from them. And some drugs that would otherwise be
3. Without full and correct documentation, managers are unable to support the disciplinary
action taken against employees. Complete documentation would include (1) the date,
time, and location of the incident(s); (2) the behavior exhibited by the employee (the
4. Students’ answers will vary. This question is intended to have students develop different
alternative dispute resolution systems and to describe benefits derived from them. Figure
13.12 in the textbook lists seven questions to consider during disciplinary investigations.
NOTES FOR END-OF-CHAPTER CASE STUDIES
Case Study 1: Discharged for Off-Duty Behavior
1. Students’ answers will vary. Chad was fired for making a tweet on the team’s official
account that the other team considered “not very classy.” The tweet made on his own
2. Students’ answers will vary. Organizations in different types of businesses have
traditionally imposed different codes of conduct upon their employees. Police agencies,
3. Students’ answers will vary. If Chad was warned about previous tweets, he would not
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Case Study 2: “You Can’t Fire Me! Check Your Policy”
1. As a general rule, in termination cases for absenteeism, the employee’s seniority and
work record have influenced labor arbitrators to either uphold or modify the discharge
2. Management has no “legal right” to know why employees refuse overtime requests.
Regardless, management has a right to question employees about their proposed absences
3. Hattie’s argument that the company did not follow its published disciplinary policy is
compelling. This is particularly true where the disciplinary policy is progressive and
outlines various penalty steps leading to termination. As noted in the textbook, one
purpose of progressive discipline—or a positive discipline policy—is to inform
4. Answers will vary. The important thing is not the answer but evidence that some thought
went into the answer.
FLIP TIPS
Group Activity
Assume the following hypothetical situation:
A company is being sued for negligent hiring. They hired an employee who at the time of
recruitment disclosed verbally and stated in writing about their prior drug addiction. Is
the company guilty of negligent hiring?