Title VII of the Civil Rights Act of 1964 forbids discrimination in all areas of the employment relationship, such as hiring, opportunities for advancement, compensation increases, layoffs, and terminations, against members of certain protected classes based on factors such as race, color, gender, religious beliefs, or national origin. The intent of Title VII is to ensure that employment decisions are made on the basis of an individual’s qualifications rather than on the basis of personal biases. The law has reduced direct forms of discrimination (for example, refusing to promote African Americans into management, failing to hire men as flight attendants, refusing to hire women as construction workers, etc.) as well as indirect forms of discrimination (using employment tests that Caucasians pass at a higher rate than do African Americans, for instance). Note, however, that organizations are free to base employment decisions on such job-related factors as qualifications, performance, seniority, and so forth. For example, an organization can certainly hire a male job applicant instead of a female applicant if he is more qualified (i.e., has more education and/or experience related to the job). However, he cannot be hired simply because of his gender.

Employment requirements such as test scores and other qualifications are legally defined as having an adverse impact on minorities and women when such individuals meet or pass the requirement at a rate less than 80 percent of the rate of majority group members. Criteria that have an adverse impact on protected groups can be used only when there is solid evidence that they effectively identify individuals who are better able than others to do the job. The Equal Employment Opportunity Commission (EEOC) is charged with enforcing Title VII as well as several other employment-related laws.

The Age Discrimination in Employment Act, passed in 1967, amended in 1978 and again in 1986, is an attempt to prevent organizations from discriminating against older workers. In its current form, it outlaws discrimination against people older than 40 years. Both the Age Discrimination in Employment Act and Title VII require passive nondiscrimination, or equal employment opportunity. Employers are not required to seek out and hire minorities, but they must treat all who apply fairly.

Several executive orders, however, require that employers holding government contracts engage in affirmative action, actively and intentionally seeking and hiring employees from groups that are underrepresented in the organization. These organizations must have a written affirmative action plan that spells out employment goals for underused groups and how those goals will be met. These employers are also required to act affirmatively in hiring Vietnam-era veterans (as a result of the Vietnam Era Veterans’ Readjustment Assistance Act) and qualified disabled individuals. Finally, the Pregnancy Discrimination Act forbids discrimination against women who are pregnant.

In 1990, Congress passed the Americans with Disabilities Act, which forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees.

More recently, the Civil Rights Act of 1991 amended the original Civil Rights Act as well as other related laws by making it easier to bring discrimination lawsuits while simultaneously limiting the amount of punitive damages that can be awarded against employers in those lawsuits.

Laws also regulate compensation and benefits. The Fair Labor Standards Act, passed in 1938 and amended frequently since then, sets a minimum wage and requires the payment of overtime rates for work in excess of 40 hours per week. Salaried professional, executive, and administrative employees are exempt from the minimum hourly wage and overtime provisions. The Equal Pay Act of 1963 requires that men and women be paid the same amount for doing the same job. Attempts to circumvent the law by having different job titles and pay rates for men and women who perform the same work are also illegal. Basing an employee’s pay on seniority or performance is legal, however, even if it means that a man and woman are paid different amounts for doing the same job.

The provision of benefits is also regulated in some ways by state and federal laws. Certain benefits are mandatory, such as workers’ compensation insurance for employees who are injured on the job. Employers who provide a pension plan for their employees are regulated by the Employee Retirement Income Security Act (ERISA) of 1974. The purpose of this act is to help ensure the financial security of pension funds by regulating how they can be invested. The Family and Medical Leave Act (FMLA) of 1993 requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies. President Donald Trump has stated that he believes this leave period should be extended, although as of this writing no action has been taken.

Union activities and management’s behavior toward unions constitute another heavily regulated area. The National Labor Relations Act (also known as the Wagner Act), passed in 1935, established procedures for employees to vote on whether or not to be represented by a union. If they vote to be represented by a union, management is required to bargain collectively with that union. The National Labor Relations Board (NLRB) was established by the Wagner Act to enforce its provisions. Following a series of severe strikes in 1946, the Labor-Management Relations Act (also known as the Taft-Hartley Act) was passed in 1947 to limit union power. The law increases management’s rights during an organizing campaign. The Taft-Hartley Act also contains the National Emergency Strike provision, which allows the president of the United States to prevent or end a strike that endangers national security. Taken together, these laws balance union and management power. Employees can be represented by a legally created and managed union, but the business can make non-employee-related business decisions without interference.

The Occupational Safety and Health Act (OSHA) of 1970 directly mandates the provision of safe working conditions. It requires that employers (1) provide a place of employment that is free from hazards that may cause death or serious physical harm and (2) obey the safety and health standards established by the Department of Labor. Safety standards are intended to prevent accidents, whereas occupational health standards are concerned with preventing occupational disease. For example, standards limit the concentration of cotton dust in the air because this contaminant has been associated with lung disease in textile workers. The standards are enforced by OSHA inspections, which are conducted when an employee files a complaint about unsafe conditions or when a serious accident occurs.

Spot inspections of plants in especially hazardous industries such as mining and chemicals are also made. Employers who fail to meet OSHA standards may be fined. A Miami-based company, Lead Enterprises Inc., was cited by OSHA as knowingly failing to protect employees from lead exposure despite knowing the potential hazards (brain damage, kidney disease, and reproductive system damage). The company, which produces various lead products, including fish tackles and lead diving weights, was cited for 32 safety and health violations after multiple inspections and fined more than $307,000 in penalties.⁴ More recently, a massive explosion at a fertilizer plant in the town of West, Texas, in 2013 may have been partially caused by unsafe work practices. Moreover, preliminary evidence suggested that OSHA inspectors had also missed some warning signs of a potential disaster at the plant.

In addition to these established areas of HR legal regulation, several other legal issues are also noteworthy.