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Legal Issues In Reduction Of Workforce Simlation

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Legal Issues in Reduction of Workforce Simulation

September 24, 2007

Legal Issues in Reduction of Workforce Simulation

FastServe, Inc. is a $25 million dollar company with a workforce of 350 employees directly involved in the marketing of sports apparel. The primary segment of the population that FastServe targets is labeled Generation Y. This segment of the population is mostly interested in sport activities. FastServe opened online marketing and distribution channels one for boys and one for girls. 10 percent of the FastServe's employees were transferred to manage the online distribution websites. After the websites were up and running, problems with the 3-D drape-n-see mannequins arose. Downloading was so cumbersome that customers were not ordering enough with downloading. Because of this problem and the lack of sales, FastServe opted to eliminate the online distribution service. The shutdown of the online distribution service will precipitate downsizing. Several employees will have to be laid off with the remaining employees retained with new job descriptions. The selection of those that remain is based on past performance and skill sets. The five employees considered for dismal are Carl Haimes, Brian Carter, Sarah Boyd, Nora Manson and Jenny Mills. The table below will demonstrate the legal concept that relates to their employment position with FastServe (Legal Environment of Business).

Employee Employment Law Concepts Relation to Concept

Carl Haimes Sexual Orientation Discrimination -

Title VII of the Civil Rights Act of 1964 does not specifically address sexual orientation but it does prohibit discrimination based on sex (Reed, Shedd, Morehead, & Corley, 2004, p. 456).

Carl Haimes has an overall above average performance record. However, he has been the target of sexually offensive remarks and harassment by his supervisor. After an investigation it was determined that supervisor had harassed Carl.

Brian Carter American Disabilities Act (ADA) -

The ADA prohibits employer discrimination against job applicants or employees based on (1) their having a disability (2) their having had a disability in the past, or (3) their being regarded as having a disability (Reed, Shedd, Morehead, & Corley, 2004, p. 464) Brian Carter has a rating of average in terms of his performance. He is a contract employee but has excessive absences in the last two months. Brian Carter suffers from carpel tunnel, which is the reason for his excessive absences. Brian's skills would be considered redundant and needed by the company (Legal Environment of Business).

Sarah Boyd Age Discrimination in Employment Act -

The Age Discrimination in Employment Act (ADEA) prohibits employment discrimination against employees ages 40 and older, and it prohibits the mandatory retirement of these employees (Reed et al., 2004, p. 462).

Sarah Boyd is considered an average employee whose skills set is becoming obsolete. Sarah, being 53 years of age, is also older than the other employees who are being considered for layoffs (Legal Environment of Business).

Nora Manson Discrimination on the basis of Race or Color -

Title VII of the Civil Rights Act of 1964 prohibits discriminatory practices based on race or color that involve recruiting, hiring and promotion of employees.

Nora Manson has an overall above average performance rating. She has been the catalyst for several employees in her department filing of discrimination suits against the company. She is an active member of the NAACP. She also has had a number of excessive absences in the last two months (Legal Environment of Business).

Jenny Mills The Pregnancy Discrimination Act

This Act amended the Civil Rights Act in 1978. Under it, employers can no longer discriminate against women workers who become pregnant or give birth Thus, employers with health or disability plans must cover pregnancy, childbirth and related medical conditions in the same manner as other conditions are covered (Reed, Shedd, Morehead, & Corley, 2004, p.455). Jenny Mills has an average overall performance record. She is a contract employee whose skills are non-critical to FastServe. She is also pregnant. Her pregnancy is causing her health problems, which require that she take frequent breaks, more than the company usually allows. Jenny's frequent breaks are causing conflict with the male employees in her department (Legal Environment of Business).

Extenuating Regulatory Circumstances

Collective bargaining units are not mentioned in the simulation. However, four of the five employees considered for layoffs are contract employees. They would fall under the category defined as employment-at-will. The employment-at-will doctrine states that unless employees contracted for a definite period of employment (such as one year), employers were able to discharge them without cause at any time. FastServe would be able to terminate these employees without notice as long as no violations of federal statutes such as the Civil Rights Act, Age



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