CH 03

Chapter 3
Equal Employment
Opportunity,
Affirmative Action,
and Workforce
Diversity
Copyright © 2016 Pearson Education, Ltd 3-1

Learning Objectives
1. Explain the concept of equal employment
opportunity.
2. Identify the federal laws affecting equal
employment opportunity.
3. Discuss who is responsible for ensuring equal
employment opportunity.
4. Define and operationalize types of employment
discrimination.
5. Define and discuss affirmative action.

Learning Objectives (Cont.)
6. Explain the Uniform Guidelines related to sexual
harassment, national origin, religion, and caregiver
(family responsibility) discrimination.
7. Describe sexual harassment in the global
environment.
8. Describe the concept of diversity.
9. Discuss diversity management.
10.Explain the various elements of a diverse
workforce.

LO 1
Equal Employment Opportunity:
An Overview
Equal employment opportunity
(EEO): Laws and policies that require all
individuals’ rights to equal opportunity in
the workplace, regardless of:
Race, color, sex, religion, national
origin, age, and disability
Copyright © 2016 Pearson Education, Ltd

3-4
LO 2
Federal Laws Affecting Equal

Employment Opportunity

LO 2
Civil Rights Act of 1866
 Oldest federal legislation affecting staffing
 Based on Thirteenth Amendment
 No statute of limitations
 Employment is a contractual arrangement
 Extended to cover private parties in 1968

LO 2
Title VII of Civil Rights Act of 1964,
Amended in 1972
 Three notable exceptions to Title VII

discrimination:
Bona fide occupational qualifications
(BFOQ)
Bona fide seniority system
Professionally developed ability tests as
long as there was no intention to engage
in illegal discrimination

LO 2
Equal Pay Act of 1963,
Amended in 1972
 Cannot pay women less money than men if
both employees do work that is substantially
the same
 Work must:
 Require equal skill
 Require equal effort
 Involve equal responsibility
 Be performed under similar working conditions

LO 2
Equal Pay Act of 1963,
Amended in 1972 (Cont.)
 Four exceptions that permit unequal pay for
equal work include:
 Seniority system
 Merit system
 System that measures earnings by quantity or
quality of production
 Any factor other than sex

LO 2
Lilly Ledbetter Fair Pay Act of 2009
 Each paycheck that unfairly pays a worker

less than it should is a discriminatory act
 The act gives the worker a fresh 180-day
period during which time discrimination
charges must be filed
 Recognition of an unfair paycheck at any
time starts the period

LO 2
Pregnancy Discrimination Act of 1978

 Amendment to Title VII of Civil Rights Act
 Pregnancy, childbirth, or related medical
condition
 Prohibits questions about family plans,
birth control techniques, etc.
 Employee benefits are also covered

LO 2
Civil Rights Act of 1991
 Provided appropriate remedies for intentional
discrimination and unlawful harassment
 Codified “business necessity” and “job-relatedness”
 Confirmed authority and guidelines for finding
disparate impact under Title VII
 Disparate impact: When certain actions in
employment process work to disadvantage of
members of protected groups. Discussed under topic
of adverse impact
LO 2
Age Discrimination in Employment Act
of 1967, Amended in 1986
 Illegal to discriminate against anyone 40
years or older
 Enforced by the EEOC
 Pertains to employers who have 20 or
more employees
 Provides for trial by jury
 Class action suits are possible

LO 2
Age Can Be Bona Fide
Occupational Qualification
 Federal Aviation Administration can force

commercial pilots to retire at age 65
 Greyhound did not violate ADEA when it
refused to hire persons 35 years or older
as intercity bus drivers
 Likelihood of risk or harm to passengers
was involved with both cases
LO 2
Rehabilitation Act of 1973
 Prohibits discrimination against disabled workers
working for government contractors and
organizations
 Contracts exceeding $2,500: Employer required to
post affirmative action notices
 Contracts exceeding $50,000, or if contractor has
50 or more employees: Employer must prepare
written affirmative action plan
 Administered by Office of Federal Contract
Compliance Programs (OFCCP)
LO 2
Americans with Disabilities Act
of 1990 (ADA)
 Prohibits discrimination against qualified

individuals with disabilities
 Disabled individual: Person who has, or
is regarded as having, a physical or
mental impairment that substantially limits
one or more major life activities, and has
a record of such an impairment
LO 2
Americans with Disabilities Act:
Amendments Act of 2008
 Expanded the definition of “disability”
 More applicants and employees eligible for
reasonable accommodations
 Broadened ADA's definition of disability by
expanding term “major life activities”
 Eliminated the “substantially limited”
requirement

LO 2
Immigration Reform and Control Act
(IRCA) of 1986
 Granted amnesty to approximately 1.7 million
long-term unauthorized workers
 Established criminal and civil sanctions
against employers who knowingly hire
unauthorized aliens
 Reduced threshold coverage to 4 employees
 Toughened criminal sanctions for employers
who hire illegal aliens
LO 2
Uniformed Services Employment and
Reemployment Rights Act (USERRA) of 1994
 Protections for Reservists and National Guard

called to active duty
 Workers entitled to return to civilian employment
after military service
 Intended to eliminate or minimize employment
disadvantages to civilian careers
 Escalator principle: Can return to job he/she
would have attained

LO 2
Vietnam Era Veterans’ Readjustment
Assistance Act of 1974, as Amended
 Originally referred to Vietnam era veterans
 Served in a campaign or expedition for which
a medal was issued
 Includes Desert Storm and the current
engagements in the Middle East
 Prohibits federal contractors from
discriminating against specified categories of
veterans
LO 2
Genetic Information
Nondiscrimination Act of 2008
 Title I of GINA applies to employer-sponsored
group health plans
 This title generally prohibits discrimination in
group premiums based on genetic information
and the use of genetic information as a basis for
determining eligibility or setting health insurance
premiums
 Title I also places limitations on genetic testing
and the collection of genetic information

LO 2
Genetic Information
Nondiscrimination Act of 2008 (Cont.)
 Title II of GINA prohibits the use of genetic
information in the employment setting for making
employment decisions such as hiring decisions,
compensation, training, and termination
 GINA further restricts the deliberate acquisition
of genetic information by employers and others
covered by Title II, and strictly limits them from
disclosing genetic information

LO 2
State and Local Laws
 State and local laws affect EEO

 When EEOC regulations conflict with
state or local civil rights regulations,
legislation more favorable to women
and minorities applies

LO 3
Responsibility for Ensuring EEO
 Equal Employment Opportunity
Commission (EEOC)
 Office of Federal Contract Compliance
Programs (OFCCP)
 Employers

LO 3
EEOC
 The EEOC administers most of the
aforementioned laws
 Under Title VII, filing a discrimination
charge initiates EEOC action
 The EEOC continually receives complaints

LO 3
Steps in Handling a Discrimination
Case

LO 3 Factors that Determine whether EEOC
Will Pursue Litigation
 Number of people affected by alleged

practice
 Amount of money involved in charge
 Other charges against employer
 Type of charge
LO 3
OFCCP
 The OFCCP enforces the requirements of
affirmative action and EEO required of
those who do business with the federal
government
 The OFCCP is an agency within the U.S.
Department of Labor

LO 3
Employer
 Takes responsibility to develop and
implement policies that comply with EEO
laws
 Provides training to employees at
appropriate times, especially if there have
been violations of the company’s EEO
policies

LO 3
Types of Employment
Discrimination
 Disparate treatment, often thought of as
intentional discrimination
 Adverse or disparate impact, often thought
of as unintentional discrimination

LO 3
Uniform Guidelines on Employee
Selection Procedures
 Single set of principles
 Designed to assist employers, labor
organizations, employment agencies, and
licensing and certification boards
 Comply with federal prohibitions against
employment practices that discriminate
 Based on race, color, religion, sex, and
national origin
LO 4
Concept of Disparate Treatment
 Employer treats some people less
favorably than others because of race,
religion, sex, national origin, and age.
 Most easily understood form of
discrimination
 McDonald v. Santa Fe Trail Transportation
Company (1977) offers an example of
disparate treatment
LO 4
Concept of Adverse Impact
 Defined in terms of selection rates
 Established by Uniform Guidelines
 Occurs if women or minorities are not
hired at rate of at least 80% of best-
achieving group
 Also called the four-fifths rule

LO 4
Adverse Impact Example
During 2013, 300 blacks and 300 whites
were hired
1,500 qualified black applicants
1,000 qualified white applicants
Using the adverse impact formula, you have:
300/1500 = 0.2
300/1000 = 0.3 = 66.67%
Thus, adverse impact exists
LO 4
Uniform Guidelines
 Guidelines on Sexual Harassment

 Guidelines on Discrimination Because
of National Origin
 Guidelines on Discrimination Because
of Religion
 Guidelines on Caregiver (Family
Responsibility) Discrimination
LO 5
Affirmative Action
 President Harry S. Truman officially ended racial
segregation in all branches of the military by issuing
Executive Order 9981 in 1948
 Executive Order: Directive issued by the president
that has the force and effect of law enacted by
Congress as it applies to federal agencies and
federal contractors
 Officially, affirmative action began in 1965 when
President Lyndon B. Johnson signed Executive
Order 11246
LO 5
Executive Order 11246
 Provides for equal opportunity in federal
employment
 Prohibits discrimination in employment
because of race, color, religion, sex, or
national origin
 Positive, continuing program in each
executive department and agency

LO 5
Affirmative Action Programs
Approach developed by organizations

with government contracts to
demonstrate that workers are
employed in proportion to their
representation in firm's relevant labor
market

LO 5
Degree of Control OFCCP
Will Impose
 Contractors with $10,000–$50,000 contracts are
governed by equal opportunity clause
 If contractor (1) has 50 or more employees, or (2)
has contracts of $50,000 or more, it must develop
written affirmative action program and file annual
EEO-1 report
 When contract exceeds $1 million:
 All previously stated requirements must be met
 OFCCP is authorized to conduct pre-award
compliance reviews
LO 5
What Is Included in an AAP?
 Develop a policy statement
 Analyze deficiencies in utilization of minority
groups and women
 Conduct a utilization analysis
 Analyze all major job groups
 Underutilization: Having fewer minorities or
women in a particular job group than would
reasonably be expected by their availability
LO 5
Underutilization Example
 If utilization analysis shows availability of
blacks for certain job group is 30%,
organization should have at least 30%
black employment in that group
 If actual employment is less than 30%,
underutilization exists, and firm should set
a goal of 30% black employment for that
job group
LO 5
Primary Focus
 Goals and timetables
 Annual and ultimate
 Annual goal: Move toward elimination of
underutilization
 Ultimate goal: Correct all underutilization
 Should not establish inflexible quotas that
must be met

LO 6
Uniform Guidelines on Sexual
Harassment
 Title VII generally prohibits gender
discrimination in employment
 EEOC issued interpretative guidelines
 Two types of sexual harassment:
Hostile work environment
A quid pro quo situation

LO 6
Sexual Harassment (Cont.)
 Employers are liable for acts of supervisors,
regardless of whether employer is aware of the
sexual harassment
 Employer is responsible for acts of co-workers if
employer knew, or should have known, about
the acts
 Employer may be liable for acts committed by
nonemployees in workplace
 Employer may not be liable if it takes immediate
and appropriate action
LO 6
Uniform Guidelines on Discrimination
Because of National Origin
Discrimination on basis of national origin is

denial of equal employment opportunity
due to:
Individual’s ancestors or place of birth
Individual’s physical, cultural, or linguistic
characteristics

LO 6
English-Only Rule
 Courts generally ruled in employer’s favor
if rule would:
Promote safety and product quality
Stop harassment
 Must be justified by a compelling business
necessity

LO 6
Uniform Guidelines on Discrimination

Because of Religion
Obligation to accommodate religious
practices unless employer can
demonstrate a resulting hardship

LO 6
Methods for Accommodating
Religious Practices
 Voluntary substitutes
 Flexible scheduling
 Lateral transfers
 Change in job assignments
 Unions can permit donations

LO 6
Uniform Guidelines on Caregiver
(Family Responsibility) Discrimination
 Discrimination based on employee
obligations to care for family members
 EEOC’s guideline: “Unlawful Disparate
Treatment of Workers with Caregiving
Responsibilities”
 Not binding
 Offers “best practices” measures
LO 7
Global Sexual Harassment
 Behaviors that violate U.S. cultural

norms may not be perceived as a
problem in another culture
 Level of enforcement varies
considerably from country to country

LO 8
Diversity
 Any perceived difference among people
 More than equal employment and
affirmative action
 Creates workforces that mirror
populations and customers

LO 9
Diversity Management
Ensuring that factors are in place to:

 Provide for and encourage the
continued development of a diverse
workforce
 Meld actual and perceived differences
among workers

Components of the Diverse
Workforce
 Single parents and  People with
working mothers disabilities
 Women in business  Immigrants
 Mothers returning to  Foreign workers
the workforce  Young persons, some
 Dual-career families with limited education
 Ethnicity and race or skills
 Older workers  Baby Boomers, Gen
X, Gen Y, and Gen Z
Single Parents and Working Mothers
 Number is growing
50% of marriages end in divorce
Widows and widowers who have children
 More than 70% of mothers with children
under 18 are in workforce
 Being a mother does not significantly change
young women's career ambitions

Women in Business
 Prominent rise in number of women in labor
force
 Entering labor force in high-paying,
professional jobs and women dominating
health-care sector
 Women make up majority of American
workforce
 Many opt out of corporate life
Mothers Returning to the Workforce
 More new mothers are leaving the labor

force only to return later
 Some firms are trying to recruit them to
return to labor force
 Some employers have programs that help
their employees leave and later return

Dual-Career Families
 Both husband and wife have jobs and

family responsibilities
 Children often have both parents working
outside home
 Often turn down relocations
 Want more workplace flexibility

Ethnicity and Race
 By 2016, 43% of new job applicants will be
people of various ethnicities and race
 Often experience stereotyping
 Often encounter misunderstandings and
expectations
 Bicultural stress
 Culture of origin can lead to
misunderstandings in the workplace
Older Workers
Many Boomers deferred retirement

United States faces rapid departure of
Boomers
Many companies try to keep the over-55
worker

Persons with Disabilities
 Disabled workers do as well as
unimpaired workers in terms of:
Productivity
Attendance
Average tenure
 Costs for accommodations differ
very little from those for general
population
Immigrants
 Large numbers of immigrants have settled

in the United States
 Require time to adapt
 Managers must work to understand
different cultures and languages

Foreign Workers
 The H-1B employment visa brings in

upwards of 135,000 skilled foreign workers
annually
 Most H-1B visas are distributed to
employers through a lottery system
 Exact number of H-1B visa holders is
difficult to determine

Young Persons, Some with Limited
Education or Skills
 Lower labor force participation rate for
young people
 Recent recession was especially harsh
for 16-to-19-year-olds
 Often have poor work habits
 Can do many jobs well
 Jobs can be de-skilled
Baby Boomers
 Born just after World War II through the
mid-1960s
 Employers seek out boomers because
they bring a wealth of skills and
experience to the workplace
 Recognized as having a great work ethic
and a solid attendance record

Generation X
 41 million American workers born between
the mid-1960s and late 1970s
 Possess lots of energy and promise
 Job instability and the breakdown of the
traditional employer-employee relationship
 Think more as free agents and expect to
build career security, not job security

Generation Y
 People born between the late 1970s
and late 1990s
 Promises to be the richest, smartest,
and savviest ever
 Strong sense of morality and civic-
mindedness
 Childhoods have been short-lived

Generation Z or Digital Natives
 Born between 1995 and 2009
 More worldly, high-tech and confident
 Tend to have short attention spans
 Desire speed over accuracy
 Enjoy media that provides live social
interaction

Multigenerational Diversity
 Four generations are now in the workforce
 Each has different defining characteristics
and nicknames
 Managers need to be aware of and skilled
in dealing with the different generations

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Chapter 3

Copyright © 2016 Pearson Education, Ltd 3-1

Copyright © 2016 Pearson Education, Ltd 3-2

Copyright © 2016 Pearson Education, Ltd 3-3

Copyright © 2016 Pearson Education, Ltd

Federal Laws Affecting Equal

Copyright © 2016 Pearson Education, Ltd 3-5

Copyright © 2016 Pearson Education, Ltd 3-6

 Three notable exceptions to Title VII

Copyright © 2016 Pearson Education, Ltd 3-7

Copyright © 2016 Pearson Education, Ltd 3-8

Copyright © 2016 Pearson Education, Ltd 3-9

 Each paycheck that unfairly pays a worker

Copyright © 2016 Pearson Education, Ltd 3-10

Pregnancy Discrimination Act of 1978

Copyright © 2016 Pearson Education, Ltd 3-11

Copyright © 2016 Pearson Education, Ltd 3-13

 Federal Aviation Administration can force

 Prohibits discrimination against qualified

Copyright © 2016 Pearson Education, Ltd 3-17

 Protections for Reservists and National Guard

Copyright © 2016 Pearson Education, Ltd 3-19

Copyright © 2016 Pearson Education, Ltd 3-21

Copyright © 2016 Pearson Education, Ltd 3-22

 State and local laws affect EEO

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Copyright © 2016 Pearson Education, Ltd 3-24

Copyright © 2016 Pearson Education, Ltd 3-25

Copyright © 2016 Pearson Education, Ltd 3-26

 Number of people affected by alleged

 Amount of money involved in charge

 Other charges against employer

Copyright © 2016 Pearson Education, Ltd 3-28

Copyright © 2016 Pearson Education, Ltd 3-29

Copyright © 2016 Pearson Education, Ltd 3-30

Copyright © 2016 Pearson Education, Ltd 3-33

 Guidelines on Sexual Harassment

Copyright © 2016 Pearson Education, Ltd 3-37

Approach developed by organizations

Copyright © 2016 Pearson Education, Ltd 3-38

Copyright © 2016 Pearson Education, Ltd 3-42

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Discrimination on basis of national origin is

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Uniform Guidelines on Discrimination

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 Behaviors that violate U.S. cultural

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Ensuring that factors are in place to:

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 More new mothers are leaving the labor

Copyright © 2016 Pearson Education, Ltd 3-56

 Both husband and wife have jobs and

Copyright © 2016 Pearson Education, Ltd 3-57