Current Legal Issues in Human Resource Management: Elora
Jean & Co.
Scenario:
Elora Jean and Co., based in central Indiana, is a
family-run manufacturing business. The company manufactures grain products for
the food industry. Currently, the organization consists of a production
facility, which currently has 110 unionized production employees, and two
administration offices, which have 14 non-union employees. Elora Jean and Co.
is in the process of opening a production facility in Malaysia, which will have
20 non-union employees.
Elora Jean and Co. has been operating as a
sole-proprietorship for 18 months. At the start-up phase, the company owner did
not forecast such an exponential increase in demand for her product.
Consequently, she did not apply for unemployment insurance, purchase a general
liability insurance policy, or obtain a worker’s compensation policy because
she planned to use her own family members to operate the business. Over the
last 13 months the company’s organization has grown due, in part, to its aggressive
hiring strategy and need to manage production demands. In spite of the
company’s rapid growth, the company does not have a dedicated human resources
department. Instead, the company’s owner delegated human resource
administration duties to the operations manager (OM). Consequently, the OM’s
knowledge of human resource policy, practice, and regulation is very limited.
As the company continues to expand its operation, the owner detected an
increase in employee grievance cases. The owner foresees, due to the lack of
human resource administration experience, certain legal ramifications of an
under-managed workforce.
You are a contracted strategic human resource consultant for
Elora Jean and Co. Your role, over the next five weeks, is to ensure the
company’s HR policies and processes are in compliance with local labor, state
labor, and federal labor statutes.
The critical areas, in which you intend to focus, will
include EEO staffing laws, anti-discriminatory hiring practices, immigration
bills, foreign worker provisions, and affirmative action regulations. You will
be asked to review labor laws and relevant cases, such as the Fair Labor
Standards Act (FLSA), Family Medical Leave Act (FMLA), Americans with
Disabilities Act (ADA), and Title VII of the Civil Rights Act. You are also
being asked to communicate labor and employment litigation risks and solutions
to the owner.
The production facility, with its union representation, will
present additional challenges. You have had experience dealing with the
National Labor Relations Board in the past, and you are focused on keeping
Elora Jean and Co. clear of investigations and hearings with the NLRB.
Therefore, you plan to review and identify management practices to minimize the
risk of unfair labor practice charges. A comprehensive review of grievance
procedures, and labor relations practices within the context of union
representation, will be on your list of priorities.
Additionally, the production facility presents an increased
risk for safety accidents. The owner asks you to initiate a safety audit to
ensure that Elora Jean and Co. is compliant with Occupational Safety and Health
Act (OSHA) laws. A review of Elora Jean and Co.’s safety records will be
recommended to determine the company’s legal liabilities and limitations
regarding its drug-free workplace policy.
With the Malaysian production facility on the horizon, there
will be international HR policies and regulations to consider. Elora Jean and
Co. needs you to determine U.S. and International HR laws that might apply to
the off-shore operation, as well as the employer’s responsibilities to U.S.
employees and non-U.S. employees working abroad.
Elora Jean and Co.’s HR issues will provide a challenging
five-week project for the human resource professional. The success of Elora
Jean and Co. depends upon your in-depth knowledge of U.S. labor laws, general
knowledge of HR regulations as they apply to a global workforce, and your HR
policy guidance to keep the company within its legal boundaries of human
resource management. With this in mind, you are preparing yourself to help
Elora Jean and Co. solve its labor and employment law issues
Task: As the HR legal consultant working with Elora Jean
& Co., you have identified several needs with regard to the hiring process.
You believe that improving workplace diversity would regulate the cultural
dynamics of the organization and stem any legal issues of cultural
under-representation.
Beyond a solid EEO policy to ensure the hiring process is
free of discrimination, the owner has asked for your thoughts on implementing
an affirmative action policy.
Questions to Discuss:
Based on your research and experience, do you recommend an
affirmative action policy be implemented? If so, what would it include and what
value will it bring to Elora Jean & Co. with regard to helping the company
remain competitive?
If you do not feel an affirmative action policy is
appropriate for Elora Jean & Co., what are the issues? What would you
recommend, instead, to maximize the diversity of Elora Jean & Co.’s
workforce?
Describe an EEO and affirmative action strategy that would
cover employees at the Malaysian facility? What specific laws and/or cases
might apply to EEO and affirmative action enforcement in an off-shore business?
