182 Outcome: Legislation and Employer-Employee Relationships

What you’ll learn to do: identify the areas where legislation and law affect the employer-employee relationship: labor laws/unions, workplace safety, equal opportunity, and civil rights)

Employers can find themselves in deep trouble when they violate the legislation and laws that govern the employer/employee relationship. Violations can ruin a company financially, and the outcome in the court of public opinion can tarnish a once golden reputation. How important is it for HR managers to know and follow employment laws? Consider what it cost these companies as you study this next section.

•  $250 million—Arnett v. California Public Employees’ Retirement System, Case No.: 95- 3022 (N.D. Cal. Jan. 29, 2003) (approval given to consent decree in a lawsuit involving charges that the California Public Employees’ Retirement System discriminated against public safety officers who took disability retirements on the basis of age).
•  $192.5 million—Abdallah v. The Coca-Cola Co., Case No.: 98-CV-3679 (N.D. Ga. June 7, 2001) (approval given to consent decree involving class action brought on behalf of salaried African-American employees alleging race discrimination consisting of systemic discrimination in promotions, compensation, and performance evaluations).
•  $175 million—Velez, et al. v. Novartis, Case No.: 04-CV-9194 (S.D.N.Y. July 14, 2010) (preliminary approval granted to settlement of a nationwide class action accusing Novartis of discriminating against 5,600 current and former female sales representatives in pay and promotions).
•  $172 million—Roberts v. Texaco, Case No.: 94-2015 (S.D.N.Y. July 29, 1997) (approval given to settlement in a lawsuit involving fees for services rendered prior to the entry of judgment in the race discrimination lawsuit).
•  $132.5 million—Haynes v. Shoney’s, Inc., Case No.: 89-30093-RV (N.D. Fla. 1993) (approval given to consent decree in a race discrimination lawsuit brought in 1989 by a class of African-American Shoney’s employees). ^[1]

LEARNING ACTIVITIES

The learning activities for this section include:

• Video: The Top Five Manager Mistakes That Cause Lawsuits
• Reading: Working with Labor Unions
• Reading: Collective Bargaining
• Reading: Employee Rights: Job Protection and Privacy
• Reading: Multiculturalism and the Law
• Self Check: Legislation and Employer-Employee Relationships

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.