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)

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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.


  1. Workplace Class Action Blog by Seyfarth Shaw LLP. Chicago, IL http://www.workplaceclassaction.com/