ch. 24 - employment & discrimination law

bus 207 - prof. wu

at-will employment

Employment relationship where either party may terminate at any time for any legal reason.

key employee

High-level employee such as officer, director, or manager.

skilled employee

Employee with specialized training.

Example: engineer, marketer.

Civil Rights Act (CRA) of 1964 Title VII

Federal law prohibiting employment discrimination based on race, color, religion, sex, or national origin.

disparate treatment

Intentional discrimination against an employee.

disparate-treatment 3-step test

1) Plaintiff shows prima facie case. 2) Employer gives legitimate nondiscriminatory reason. 3) Employee proves reason is pretext.

Title VII damages

Back pay, compensatory damages, punitive damages, attorney fees, court costs, reinstatement.

disparate impact

Unintentional discrimination where neutral policy disproportionately affects protected group.

disparate-impact 3-step test

1) Plaintiff shows statistical impact. 2) Employer shows business necessity. 3) Plaintiff proves pretext.

sexual harassment

Unwelcome sexual conduct affecting employment.

EEOC

Federal agency that enforces employment discrimination laws.

quid pro quo

Sexual harassment where job benefits hinge on sexual favors.

same-sex harassment

Harassment allowed as claim under Title VII even if both parties same sex.

harassment by nonemployees

Employer may be liable for harassment by customers/vendors if employer knew and failed to act.

hostile work environment

Environment so offensive it affects ability to work.

Pregnancy Discrimination Act (PDA)

Prohibits discrimination based on pregnancy; pregnancy treated like any temporary disability.

Age Discrimination in Employment Act (ADEA)

Prohibits discrimination against employees age 40+.

Americans with Disabilities Act (ADA)

Federal law prohibiting discrimination based on disability and requiring reasonable accommodations.

ADA enforcement

Same procedures and enforcement system as Title VII through EEOC.

ADA successful claim

1) Plaintiff has disability. 2) Otherwise qualified. 3) Adverse action because of disability.

ADA remedies

Reinstatement, back pay, injunctive relief; limited compensatory and punitive damages; fines up to $100k for repeated violations.

Equal Pay Act of 1963

Requires equal pay for equal work regardless of sex.

BFOQ defense

Employer may hire based on protected class if essential to job. Example: actor for specific role.

merit defense

Employment decisions based on testing or evaluations valid under content, criterion, or construct validity.

seniority system defense

Employees may be treated differently based on bona fide seniority systems.

remedial seniority

Seniority adjustments granted as remedy for discrimination.

Title VII punitive damages cap

$300k for 500+ employees; $100k for 101–200 employees; $50k for ≤100 employees.

Title VII claim process step 1

Employee files charge with state or federal EEOC within 180 days.

Title VII claim process step 2

EEOC notifies employer within 10 days, investigates, and attempts conciliation.

right-to-sue letter

EEOC document giving employee permission to file a lawsuit.

Defense of Marriage Act (DOMA)

Defined marriage federally as one man and one woman (now mostly invalid after Supreme Court decisions).

Due Process Clause (14th Amendment)

Prohibits government from depriving individuals of life, liberty, or property without due process.

Equal Protection Clause (14th Amendment)

Requires government to treat similarly situated individuals equally.

wage and hour laws

Laws regulating minimum wage, overtime, and child labor.

Family and Medical Leave Act (FMLA)

Allows eligible employees up to 12 weeks unpaid leave for family or medical reasons.

unemployment compensation

Payments to eligible workers who lost jobs through no fault of their own.

Federal Unemployment Tax Act (FUTA)

Federal law that funds state unemployment programs.

COBRA

Allows employees to continue health insurance after leaving job.

ERISA

Federal law governing employee benefit and retirement plans.

HIPAA

Protects health information confidentiality; limits preexisting condition exclusions.

HIPAA & COBRA amendments

Amendments made to ERISA.

OSHA

Federal workplace safety law requiring safe working conditions.

Fair Labor Standards Act (FLSA)

Regulates minimum wage, overtime, and child labor.

Department of Labor (DOL)

Federal agency enforcing wage, hour, and safety laws.

Electronic Communications Privacy Act (ECPA)

Restricts employer monitoring of employee communications with some exceptions.

Omnibus Crime Control & Safe Streets Act of 1968

Regulates interception of phone calls; part of privacy protections.

reasonable expectation of privacy

Standard for determining whether employee privacy was violated.

Immigration Reform and Control Act

Requires employers to verify employee work eligibility; prohibits certain discrimination.

Immigration and Nationality Act (INA)

Primary federal immigration statute regulating work eligibility.

Form I-9

Document verifying identity and work authorization of employees.

USCIS

Federal agency handling immigration documentation and work authorization.

Wagner Act of 1935

Protects employees’ rights to unionize and collective bargain.

Taft-Hartley Act of 1947

Restricts union practices; balances union and employer power.

Landrum-Griffin Act of 1959

Regulates union internal affairs and protects union member rights.

National Labor Relations Act (NLRA)

Federal law governing union rights and collective bargaining.

collective bargaining

Process where employer and union negotiate employment terms.