Legal context of HR decisions

Which employee to hire?

How to compensate employees?
What benefits to offer?
How to handle conflicts?
How and when to fire employees?

Understanding and complying with HR law is important for three reasons. It helps the company to do the
right thing, to realize the limitations of the HR and legal departments, and it limits potential liability.

Equal Employment Opportunity (EEO)

The concept of equal employment opportunity has undergone much modification and fine-tuning since the
Passage of the Civil Rights Act in 1964

EEO is a combination of legislative and judicial policy set forth by federal, state, and local governments
that ensures fair and equal treatment of all persons. Job applicants may not be rejected based on
discriminatory practices

Equal Pay Act of 1963

This law requires the same pay for men and women who do the same job in the same organization.
Basically this law provides protection against discrimination based upon sex.

Civil Rights Act of 1964 (CRA) Title VII

Amended by Civil Rights Act of 1991(Title VII of Civil Rights Act)
This act prohibits discrimination based on race, color, sex, religion, or national origin. The Civil Rights
Act of 1991 amended the Civil Rights Act of 1964 and had the following purposes:
To provide appropriate remedies for intentional discrimination and unlawful harassment in the workplace
To codify the concepts of business necessity and job related pronounced by the Supreme Court.
To confirm statutory authority and provide statutory guidelines for the adjudication of disparate impacts
under title VII of the Civil Rights Act of 1964.
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 (ADEA)

The Age Discrimination in Employment Act (ADEA) (amended 1978, 1986) prohibits employers from
discriminating against individuals who are over 40 years of age. The latest amendment not only gives older
employees the option to continue working past age 70, but the health care provision of the amendment also
provides them with an additional incentive to continue to do so. The ADA has three major sections. Title I
contains the employment provisions, Titles II and III concern the operation of state and local governments
and places of public accommodation such as hotels, restaurants, and grocery stores.
1. Individuals with disabilities
2. Essential Functions
3. Reasonable accommodation
4. The Vocational Rehabilitation Act of 1973

THE AMERICANS WITH DISABILITIES ACT (ADA)

The Americans with Disabilities Act (ADA), passed in 1990, prohibits discrimination against qualified
individuals with disabilities. Persons discriminated against because they have a known association or
relationship with a disabled individual also is protected.

Challenges to Legal Compliance:

HRM practices may be challenged by anyone of stakeholders like society, community, customers,
employees and shareholders so management for every decision should have legal backing in order to
defend and explain its decisions.
A firm's HR department has considerable responsibilities with respect to human resource law. However, if
managers make poor decisions, the HR department will not always be able to resolve the situation.
The manager's job is to prevent the damage from happening in the first place. Thus, understanding and
complying with HR law helps the manager to do the right thing, realize the limitations of the HR and legal
departments, and minimize potential liability.