HR and the Law in the News
June 2007, Volume 6, Issue 6

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EEOC's E-RACE Program Focuses on Employer Practices

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Hot Hits! Education Corner

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President Signs Minimum Wage Increase

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Spotlight!

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EEOC's E-RACE Program Focuses on Employer Practices

In February of this year the U. S. Equal Employment Opportunity Commission (EEOC) announced its new program to Eradicate Racism and Colorism From Employment (E-RACE).

On May 16th, the EEOC held a public meeting to consider testimony from individuals, attorneys and subject-matter experts regarding the impact of employers' use of background and credit checks, pre-employment tests and assessments including personality and integrity tests.

TIP #1: In 1987 (yes, that's correct, 1987) the EEOC updated its Guidance for employers using conviction records to deny individuals employment. In the words of the EEOC, it maintained its position that such practices result in adverse impact in the employment of Blacks and Hispanics "in light of the statistics showing they are convicted at a rate disproportionately greater than their representation in the population." That Guidance provided that when a charge alleges that an employer failed to hire or terminated an individual's employment based on a conviction policy or practice and that policy or practice has resulted in adverse impact upon individuals of a particular protected class, the employer must show it considered the following three factors to determine that its decision was justified by business necessity:

  1. The nature and gravity of the offense or offenses;
  2. The time that has passed since the conviction and/or completion of sentence; and
  3. The nature of the job held or sought.

Keep these factors in mind as you consider adverse information you receive from background reports.

TIP #2: Also ensure that you are in full compliance with the federal Fair Credit Reporting Act (FCRA). When conducting HR audits, I find many employers are fully in compliance with the initial notice and authorization but are not aware of the next two notices that are required. If you obtain a background report through a third-party vendor (a.k.a. "Consumer Reporting Agency" or "CRA") and are considering not hiring an individual based on adverse information contained in a report, such as a conviction, you must send the individual a "Pre-Adverse Action" notice before making your final decision. If no new information is received within a reasonable period of time after sending that notice, you must then send an "Adverse Action" notice to the individual indicating you have made your final decision to not hire him or her, along with specific information regarding the CRA (name, address, telephone number), as well as a copy of the individual's rights under the FCRA. For more information contact FiveL Company and/or download a copy of the Federal Trade Commission's publication, "FCRA - What Employers Need to Know" from FiveL Company's website.

Next Topic? Then, on May 23rd the EEOC held another public meeting to consider employment practices and how they may adversely impact certain caregivers - those employees with family obligations such as caring for children or parents. Two days later the Commission published a new Enforcement Guidance that focuses on problem areas such as disparate treatment based on gender or gender stereotyping e.g., making assumptions about men and women wanting or needing to take leave to care for a child; subjective decision making -- making employment decisions based on assumptions; and more. For more information, read the new Enforcement Guidance, "Unlawful Disparate Treatment of Workers with Caregiving Responsibilities" and/or the Q & A.

TIP #1: Monitor the administration of your paid and unpaid leave policies. Ensure they are equitably applied to male and female employees. Watch for "Pregnancy Leave" policies. These may constitute gender discrimination by providing paid leave for women and not for men. Leave for pregnancy should be treated the same as any other short-term medical condition such as a broken leg. Also, track your performance appraisals and corrective or disciplinary actions. Consider whether any adverse actions such as an unsatisfactory rating on a performance appraisal or issuing corrective action has occurred immediately following an employee's request for leave. If it has, ensure that there is a business justification and proper documentation supporting the action.

On May 10th, at the invitation of the Society for Human Resource Management (SHRM), Ms. Walters spoke to a panel of representatives from the EEOC during a private meeting between EEOC and SHRM representatives. Discussed during the meeting were employers' use of background and credit checks, how they may adversely impact minorities seeking employment opportunities and when such adverse impact may be justified by business need.


Hot Hits! Education Corner

June's Public Seminars/Speaking Engagements:

Thursday, June 7th, "HR Jeopardy: An Employment Law, Legislative and Regulatory Update," presented for the Hunt Valley Business Forum's HR Roundtable, 8:30 - 9:30 a.m.

Tuesday, June 20th, "Effective Negotiation and Conflict Management," sponsored by FiveL Company, Columbia, MD, 8:00 a.m. - 4:00 p.m. This program is pre-approved by HRCI for 6.5 Strategic credits. Click here to register.

Monday, June 25th & Tuesday, June 26th, "Employee Where Art Thou? The Latest in Managing Disability and Leave Issues" presented during the 59th Annual Conference & Exposition of the Society for Human Resource Management (SHRM), Las Vegas, NV.

June's Client Training Programs:

"HR and the Law for Managers"


President Signs Federal Minimum Wage Increase

On Friday, May 25th President Bush signed into law H.R. 2206, a supplemental spending bill for the Iraq war. Included in that bill was an increase to the federal minimum wage rate of $2.10/hour that will be phased in over 26 months with three, 70 cent increases. The first increase to $5.85/hour will take effect 60 days after the President's signing (on or about July 24, 2007) followed by two more 70 cent per hour increases on the same date each year thereafter to the final rate of $7.25/hour. If you are a multi-state employer check your local states of operation. As of this writing there are at least 30 states with current minimum wage rates higher than $5.85/hour and some are scheduled to increase on July 1st.

Spotlight!

Management team members participating in a recent client training program, "HR and the Law for Managers," rated the "Value of the information provided in today's program as it relates to my job duties and responsibilities" as 5.0 or "Excellent" on a scale of 1.0 to 5.0. Some comments included, "Great class!...This was a well prepared, balanced and presented class. I really enjoyed the presenter's use of current events and experience in the class."

Looking for a management training program that will keep your management team members engaged? Call FiveL today for a listing of popular programs or click here!