UNIT II STUDY GUIDE
and the Law
Course Learning Outcomes for Unit II
Upon completion of this unit, students should be able to:
5. Analyze legal issues associated with staffing organizations, including legal requirements of staffing
5.1 Identify various types of employment relationships.
5.2 Explain the laws relevant to staffing, including staffing-related lawsuits.
5.3 Discuss the role affirmative action and equal employment opportunity play in a firm’s
staffing process, including staffing barriers.
The Legal Context
Click here to access the audio recording of this lesson.
What must be considered when staffing organizations? What laws must a company adhere to? How do
companies determine what type of employees to hire? What can companies do in order to avoid staffingrelated lawsuits? If these are questions of interest to you, the answers will be provided in this unit.
Throughout day-to-day operations, many companies are faced with various staffing concerns. Those
concerns range from the type of employee the company should hire to the laws that govern hiring/staffing
practices to the affirmative action and equal employment opportunity requirements. The company must be
certain they also consider the different legal barriers that may impede staffing.
Typically, the human resources specialist gets involved in the staffing process. Because of this, it is very
important for the human resource (HR) specialist to be knowledgeable about what it takes to staff an
organization. The HR specialist must be able to identify the types of employment relationships that are
needed to meet organizational strategic goals.
Although most companies directly hire employees, some organizations do utilize contingent workers,
independent contractors, and outsourced work. An employee works directly for the company. Contingent
workers are those individuals who are hired on a temporary basis. There are several types of contingent
workers, which will be discussed in Chapter 3. Independent contractors are typically hired to perform a
specific service. The independent contractor, although paid by the organization, is responsible for paying its
own federal and employment taxes. Outsourcing is also very prominent in staffing. Some companies
outsource jobs to other firms. When companies utilize contingent workers, independent contractors, or
outsourced work, the company is typically trying to reduce company costs. Yes, it can be cheaper to utilize
other measures instead of directly hiring employees.
Once the company or HR specialist has decided on the type of workers that are needed, they are then ready
to review the legal regulations that may impact staffing the organization. Employment laws and regulations
are very important in the process of staffing organizations. Many aspects of staffing are impacted by such
When most people hear the term affirmative action, they immediately think of quotas and special hiring for
minorities. Often times, the assumption is made that this particular law only refers to a specific ethnic group.
BHR 4601, Staffing Organizations
For those of you who may have similar perceptions, you will gain a better understanding
UNIT x STUDY
plans. You will be able to see why it was created and its impact and importance
Another well-known term is equal employment opportunity (EEO). You will often see this term when looking at
job postings. Based solely on the word equal, one may immediately think of being treated fairly in terms of
staffing. This, in essence, means the company provides fair/equal staffing opportunities for all interested
applicants. EEO laws are discussed in detail within Chapter 3. As an employee, you should gain a better
understanding as to how EEO laws provide regulations for all people and not just those within a protected
class. Other laws and regulations that correlate with EEO and/or affirmative action (AA) laws are Title VII of
the Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the
Rehabilitation Act, and Executive Order 11246. Not only will you gain knowledge on EEO and AA, but there
are several laws relevant to staffing that will be covered in this unit.
Why are these so important? Well, they help to reduce employment/staffing lawsuits. They also help to
provide guidelines for companies to follow, which leads to consistency in staffing, and they help to reduce
discriminatory practices. Of course, these are only a few of the many reasons why these laws are important.
Although there are various laws in place for companies to follow, employees still file legal claims against
employers. Some claims are dismissed; however, sometimes companies are forced to settle the lawsuits.
As you can see, there are many federal laws that impact staffing practices. Such laws have an influence
on employee recordkeeping, employment decisions, fair treatment of applicants, and ways of
determining employee types. To avoid legal issues, many organizations realize the need for these laws.
Keep in mind the ultimate goal is to hire qualified applicants, which should ultimately lead to
organizational growth and profits.
Click here to access the Chapter 3 PowerPoint Presentation.
Click here to view a PDF of the Chapter 3 presentation.
Learning Activities (Non-Graded)
Before completing your graded work, determine whether or not the statements below are true or false.
Completing this activity will prepare you for the Unit II Assessment. If you feel uncertain about the answer,
consider reviewing the material from the textbook.
1. Even if a written or verbal explicit employment contract does not exist, there is an implicit employment
contract that reflects a common understanding between the employer and employee.
2. The Americans with Disabilities Act only covers private employers with at least 15 employees.
3. The Rehabilitation Act of 1973 covers any contractor or subcontractor with a contract of $25,000 or
more with the federal government.
4. Facially neutral means that all employees and applicants are treated consistently regardless of their
5. The two most important federal agencies in terms of staffing are the Equal Employment Opportunity
Commission (EEOC) and Affirmative Action.
Non-graded Learning Activities are provided to aid students in their course of study. You do not have to
submit them. If you have questions, contact your instructor for further guidance and information.
BHR 4601, Staffing Organizations
Purchase answer to see full