MGT 501 Human Resource Management Lesson 11

Managers must understand the legal issues that affect the practices of HRM because HRM involves various activities such as recruitment, hiring, training, and performance management, all of which are subject to legal regulations. Managers need to be aware of these legal issues to ensure that their HR practices are compliant with the law and to avoid any potential legal liabilities. Understanding legal issues also helps managers make informed decisions and take appropriate actions when dealing with employee-related matters. Therefore, it is important for managers to have a good understanding of the legal aspects of HRM.

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.

Doing the Right Thing
Compliance with the law is the right thing to do. The primary requirement of these laws is to mandate
good management practice. Operating within these laws has benefits beyond simple legal compliance.
Discriminatory practices not only create potential legal liability, but also lead to poor employee morale
and low job satisfaction, which can lead to poor job performance

Laws affecting HRM:
The laws affecting HRM can be divided into two broad categories: equal employment opportunity
(EEO) laws and other laws. The major EEO laws cut across nearly every aspect of managing human
resources.

Realizing the Limitations of the HR and Legal Departments
If managers make poor decisions, the HR department neither always be able to resolve the situation nor
can a firm’s legal department solve problems created by managers. The function of the legal
department is to try to limit damage after it has already occurred.

Employment discrimination
To make an employment decision, not on the basis of legitimate job-related factors...Any employment
decision: hiring, promotions, pay, discipline, etc fail to use job-related factors (e.g., essential job
qualifications, job performance, etc.), and for employment decisions Instead, of legitimate factors
employer uses false stereotypes and prejudices. Law Prohibits Discrimination in Hiring, Compensation,
terms, conditions or privileges of employment based on Race, religion, color, sex, national origin and
Physical Disability.
Fair employment
A situation in which employment decisions are not affected by discrimination.

Affirmative action
A strategy intended to achieve fair employment by urging employers to hire certain groups of people
who were discriminated against in the past Steps that are taken for the purpose of eliminating the
present effects of past discrimination

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.

Employment discrimination refers to the act of making employment decisions without considering legitimate job-related factors. This means that individuals are being treated unfairly or unjustly in the workplace based on factors such as race, gender, age, religion, or disability. It is a violation of equal employment opportunity (EEO) laws and goes against the principles of affirmative action, which aim to promote equal opportunities and fair treatment in employment.

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.