Understanding and complying with human resource law is important because (1) it is the right thing to do, (2) it helps you realize the limitations of your firm’s HR and legal departments, and (3) it helps you minimize your firm’s potential liability.

HR law is challenging for four reasons. Laws, regulations, and court decisions are all part of a dynamic legal landscape. The laws and regulations are complex. The strategies for fair employment required by the laws and regulations sometime compete with, rather than reinforce, one another. And laws often have unanticipated or unintended consequences.

The following are the most important EEO laws: (1) Equal Pay Act of 1963—prohibits discrimination in pay between men and women performing the same job in the same organization. (2) Title VII of the Civil Rights Act of 1964—prohibits employers from basing employment decisions on a person’s race, color, religion, sex, or national origin. It has been amended or interpreted to prohibit discrimination based on pregnancy (the Pregnancy Discrimination Act of 1978) and sexual harassment. Most recently, it has been amended by the Civil Rights Act of 1991, which places the burden of proof in a discrimination case squarely on the defendant (employer), prohibits the use of quotas, and allows for punitive and compensatory damages as well as jury trials. Executive Order 11246 prohibits discrimination against the same categories of people that Title VII protects, but also requires that government agencies and contractors take affirmative action to promote the employment of persons in protected classes. (3) Age Discrimination in Employment Act of 1967—prohibits discrimination against employees who are 40 years old or older. (4) Americans with Disabilities Act of 1990—prohibits discrimination against individuals with disabilities who can perform the essential functions of a job with or without reasonable accommodation. The Vocational Rehabilitation Act of 1973, the precursor to ADA, applied only to government agencies and contractors. (5) Vietnam Era Veterans Readjustment Act of 1974—prohibits discrimination against Vietnam-era veterans by federal contractors and requires federal contractors to take affirmative action to hire Vietnam-era veterans.

Two main agencies are responsible for enforcing EEO laws. The Equal Employment Opportunity Commission (EEOC) enforces EEO laws. It processes discrimination complaints, issues written regulations, and gathers and disseminates information. The Office of Federal Contract Compliance Programs (OFCCP) enforces the laws and executive orders that apply to the federal government and its contractors. The OFCCP also monitors the quality and effectiveness of affirmative action plans.

The Immigration Reform and Control Act of 1986 requires employers to document the legal work status of their employees. The Immigration Act of 1990 makes it easier for skilled immigrants to enter the United States. The Drug-Free Workplace Act of 1988 requires that government contractors try to ensure that their workplaces are free of drug use. The Uniformed Services Employment and Reemployment Act of 1994 protects the rights of private sector employees who take short leaves to perform military service.

Employers can avoid many pitfalls associated with HR law by engaging in sound management practices. Among the most important of these practices are training, establishing an employee complaint resolution system, documenting decisions, communicating honestly with employees, and asking job applicants only for information the employer needs to know.