[MUSIC PLAYING] NARRATOR: Let's take a look at what managers need to know about employment discrimination. The EEOC has investigatory, enforcement, and informational responsibilities. Therefore, the Equal Employment Opportunity Commission investigates charges of discrimination, enforces the employment discrimination laws in federal court, and publishes guidelines that organizations can use to ensure they're in compliance with the law. 

One of the most important guidelines jointly issued by the EEOC, the US Department of Labor, the US Department of Justice, and the Federal Office of Personnel Management is the Uniform Guidelines on Employee Selection Procedures, which can be read in its entirety at www.uniformguidelines.com. These guidelines define two important criteria, disparate treatment and adverse impact, which are used in determining whether companies have engaged in discriminatory hiring and promotion practices. 

Disparate treatment, which is intentional discrimination, occurs when people, despite being qualified, are intentionally not given the same hiring, promotion, or membership opportunities as other employees because of a protected class. 

Largely, a key element of discrimination lawsuits is establishing motive, meaning that the employer intended to discriminate. If no motive can be established, then a claim of disparate treatment may actually be a case of adverse impact. Adverse impact, which is unintentional discrimination, occurs when members of a particular race, sex, age, or ethnic group are unintentionally harmed or disadvantaged because they're hired, promoted, or trained or any other employment decision substantially lower rates than other people. 

The courts and federal agencies use the 4/5 or 80% rule to determine adverse impact. Adverse impact is determined by calculating the impact ratio, which divides the decision rate for a protected group of people by the decision rate of a nonprotected group, usually white males. If the impact ratio is less than 80%, then adverse impact may have occurred. 

For example, if 20 out of 100 black applicants are hired, 20 divided by 100 is 20%, but 60 applicants are hired, 60 out of 100 or 60%, then adverse impact has occurred because the impact ratio is less than 80%. 0.2 divided by 0.6 equals 33%. 

Violation of the 4/5 rule is not an automatic indication of discrimination, however. If an employer can demonstrate that a selection procedure or test is valid, meaning that the test accurately predicts job performance or that the test is job related because it assesses applicants on specific tasks actually used in the job, then the organization may continue to use the test. If validity cannot be established, however, then a violation of the 4/5 rule will likely result in a lawsuit brought by the employees, job applicants, or the EEOC itself. 

According to the EEOC, sexual harassment is a form of discrimination in which unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature occurs. From a legal perspective, there are two kinds of sexual harassment, quid pro quo and hostile work environment. 

Quid pro quo sexual harassment occurs when employment outcomes, such as hiring, promotion, or simply keeping one's job, depends on whether an individual submits to being sexually harassed. A hostile work environment occurs when unwelcome and demeaning, sexually related behavior creates an intimidating, hostile, and offensive work environment. In contrast to quid pro quo cases, a hostile work environment may not result in economic injury. 

It's important that organizations take the time to write clear, understandable sexual harassment policy that's strongly worded, gives specific examples of what constitutes sexual harassment, spells out sanctions and punishments, and is widely publicized within the company. This lets potential harassers and victims know what will not be tolerated and how the organization will deal with harassment should it occur. 

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