1
The Legal
Environment of
Human
Resources
Management
Chapter 2

2
Employment Law
 The body of laws, administrative
rulings, and precedents which
addresses the legal rights of workers
and their employers.

3
The Government’s
Role in the
Management of HR
 Roles of Federal, State & Local Govts
 Unemployment compensation: A
benefit paid to an employee who
involuntarily loses his/her employment
without just cause

4
The Government’s
Role in the
Management of HR
 Worker’s Compensation: A benefit
paid to an employee who suffers a
work-related injury or illness.
 Garnish(ment): A court-ordered
method of debt collection in which a
portion of a worker’s income is paid
directly to one or more of that
worker’s creditors.

5
A Manager’s Review of
Significant Employment
Legislation
 Clayton Act of 1914
 Labor union: An organization that acts on
behalf of its members to negotiate with
management about the wages, hours, and
other terms and conditions of the
membership’s employment.
 Railway Labor Act of 1926
 Interstate Commerce: Commercial
trading or the transportation of persons or
property between or among states.

6
A Manager’s Review of
Significant Employment
Legislation
 Norris-LaGuardia Act of 1932
 Wagner Act of 1935
 Fair Labor Standards Act of 1938

7
A Manager’s Review of
Significant Employment
Legislation
 Title VII: The specific section of the Civil
Rights Act of 1964 that outlaws
discrimination in employment in any
business on the basis of race, color,
religion, sex, or national origin.
 The Civil Rights Act of 1964

8
A Manager’s Review of
Significant Employment
Legislation
 Equal Employment Opportunity
Commission (EEOC): The entity within
the Federal government assigned to
enforcing the provisions of Title VII of the
Civil Rights Act of 1964.
 The Civil Rights Act of 1964

9
A Manager’s Review of
Significant Employment
Legislation
 Sexual Harassment: Unwelcome sexual
advances, requests for sexual favors, and
other verbal or physical conduct of a
sexual nature.
 Affirmative Action; - A Federally
mandated requirement that employers who
meet certain criteria must actively seek to
fairly employ recognized classes of
workers.
 The Civil Rights Act of 1964

10
A Manager’s Review of
Significant Employment
Legislation
 Bona fide occupational qualification
(BFOQ): A specific job requirement for a
particular position reasonably necessary to
the normal operation of a business, and
thus allowing discrimination against a
protected class
 The Civil Rights Act of 1964

11
A Manager’s Review of
Significant Employment
Legislation
 Disparate treatment: The claim that, in
the same situation, one employee was
treated differently than other employees in
the same situation.
 Disparate impact: The claim that an
employer’s action, though not
intentionally discriminatory, still results in
unlawful discrimination. Also known as
adverse impact.
 The Civil Rights Act of 1964

12
A Manager’s Review of
Significant Employment
Legislation
 The Age Discrimination in Employment
Act of 1967
 Older Workers Benefit Protection Act of
1990
 The Pregnancy Discrimination Act of
1978

13
A Manager’s Review of
Significant Employment
Legislation
 The Worker Adjustment & Retraining
Notification Act of 1989 (“Plant Closing
Act”)
 Franchisor: The business entity that has
sold or granted a franchise.

14
A Manager’s Review of
Significant Employment
Legislation
 The Americans with Disabilities Act of 1990
 Reasonable Accommodation: Any
modification or adjustment to a job or the
work environment that will enable a qualified
applicant or employee with a disability to
participate in the application process or to
perform the job’s essential functions.
 The Family Medical Leave Act of 1993

15
The International Legal
Environment for Multi-National
Hospitality Companies
 Expatriate Manager: a citizen of one country
who is a working manager in another country.
 Special International HR Concerns:
 Accrued vacation time
 Quality of training
 Availability of qualified numbers of employees
 Employee and management attitudes toward
gender equality, appropriate dress, work ethic,
religious tolerance, and the rights of minorities

16
The Special Role of the
Hospitality Unit Manager
 Unit Manager: The individual with the
final on-site decision-making authority at
an individual hospitality operation.

17
The Special Role of the
Hospitality Unit Manager
 Ways to keep up-to-date on constantly
changing national, state, and local
legislation:
 Read hospitality industry journals and
publications
 Franchisors updates
 Stay involved in hospitality trade
associations
 Consult chambers of commerce, business
trade associations, and police, fire and
building officials