William J. Rothwell - Effective Succession Planning (2005)(3-e)(en)
.pdf148 L AYI NG T HE FO UND AT ION FO R A SUC CES SI ON PL A NN ING AN D MANAGEM EN T PROG RA M
Exhibit 6-8. U.S. Labor Laws
Name of Law |
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and Date of |
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Enactment |
Legal Citation |
Brief Description of Key Provisions |
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Davis-Bacon |
40 U.S.C. and |
The Davis-Bacon Act applies to federal con- |
Act (1931) |
sect; 276 et |
struction and repair contracts over $2,000. |
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seq. |
The Act requires contractors to pay their em- |
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ployees a specified minimum wage deter- |
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mined by the Secretary of Labor to be |
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prevailing for similar work in that geographic |
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area. Over 60 other federal laws make com- |
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pliance with Davis-Bacon provisions a precon- |
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dition for state and local contracts when a |
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portion of the funding for those contracts |
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comes from the federal government. The Act is |
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enforced by the Wage and Hour division of the |
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Department of Labor. |
The National |
29 U.S.C. and |
The National Labor Relations Act protects the |
Labor Relations |
sect; 151 |
right of employees to choose whether to be |
Act (Wagner |
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represented by a union. The Act protects |
Act and Taft- |
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against coercion by employers or unions in |
Hartley Act) |
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making this choice and establishes the ground |
(1947) |
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rules for union representation elections. The |
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Act establishes collective bargaining between |
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employers and unions. The Act is enforced by |
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the National Labor Relations Board. |
Fair Labor Stan- |
29 U.S.C. and |
The Fair Labor Standards Act provides mini- |
dards Act |
sect; 201 et seq |
mum wage and overtime requirements. Under |
(1938) |
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the FLSA all nonexempt employees are entitled |
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to cash overtime for all hours worked over 40 |
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in a workweek. The Act is enforced by the |
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Wage and Hour Division of the Department of |
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Labor and private lawsuits. |
Labor- |
29 U.S.C. and |
The Labor-Management Reporting and Dis- |
Management |
sect; 401 et seq |
closure Act, or the Landrum-Griffin Act, estab- |
Reporting and |
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lishes a set of rights for employees who are |
Disclosure Act |
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members of unions. They include the right to |
(Landrum- |
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vote, attend meetings, meet and assemble with |
Griffin Act) |
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other members, and freely express views and |
(1959) |
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opinions. The Act also requires all labor |
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unions to adopt a constitution and bylaws, and |
Starting a Systematic Program |
149 |
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contains certain reporting requirements for |
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labor organizations, their officers, and em- |
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ployees. This Act is enforced by the Office of |
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Labor Management Standards of the Depart- |
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ment of Labor. |
Contract Work |
40 U.S.C. and |
This Act sets a standard 40-hour workweek for |
Hours Safety |
sect; 327 et seq |
employees of federal contractors and regu- |
Standards Act |
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lates work in excess of the standard week in- |
(1962) |
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cluding the requirement to pay overtime. The |
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Act is enforced by the Wage and Hour Division |
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of the Department of Labor. |
Equal Pay Act |
29 U.S.C. and |
The Equal Pay Act prohibits discrimination in |
(1963) |
sect; 201 et seq |
pay and benefits on the basis of sex for jobs in |
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the same establishment that require equal skill, |
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effort, and responsibility and which are per- |
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formed under similar working conditions. The |
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Act is enforced by the Equal Employment Op- |
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portunity Commission. |
Title VII of the |
42 U.S.C. and |
Title VII makes it unlawful for an employer with |
Civil Rights Act |
sect; 2000 et |
15 or more employees to discriminate against |
(1964) |
seq. |
individuals with respect to hiring, compensa- |
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tion, terms, conditions, and privileges of em- |
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ployment on the basis of race, color, religion, |
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national origin, or sex. Title VII is enforced by |
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the Equal Employment Opportunity Commis- |
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sion. |
Executive |
42 U.S.C.A. |
Executive Order 11246 prohibits job discrimi- |
Order 11246 |
and sect; |
nation by employers holding Federal contracts |
(1965) |
2000e |
or subcontracts on the basis of race, color, sex, |
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national origin, or religion and requires af- |
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firmative action to ensure equality of opportu- |
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nity in all aspects of employment. The Order is |
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enforced by the Office of Federal Compliance |
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Contract Programs of the Department of |
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Labor. |
Service Con- |
41 U.S.C. and |
This Act is analogous to the Davis-Bacon Act |
tract Act (1965) |
sect; 351 et |
in the area of service contracts performed by |
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seq. |
private companies doing work for the federal |
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government. The Act requires contractors that |
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provide services to the federal government to |
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provide their employees a specified minimum |
(continues)
150 L AYI NG T HE FO UND AT ION FO R A SUC CES SI ON PL A NN ING AN D MANAGEM EN T PROG RA M
Exhibit 6-8. |
(continued) |
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Name of Law |
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and Date of |
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Enactment |
Legal Citation |
Brief Description of Key Provisions |
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wage and fringe benefits plan determined by |
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the Secretary of Labor to be prevailing in the |
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locality. The Act is enforced by the Wage and |
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Hour Division of the Department of Labor. |
Age Discrimi- |
29 U.S.C. and |
The Age Discrimination in Employment Act, or |
nation in Em- |
sect; 621 et |
ADEA, makes it unlawful for an employer with |
ployment Act |
seq. |
20 or more employees to discriminate against |
(1967) |
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individuals that are 40 years or older, with re- |
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spect to hiring, compensation, terms, condi- |
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tions, and privileges of employment on the |
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basis of age. The Act is enforced by the Equal |
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Employment Opportunity Commission. |
Federal Coal |
30 U.S.C. and |
This Act empowers the Secretaries of Labor |
Mine Health |
sect; 801 et |
and Health and Human Services to promul- |
and Safety Act |
seq. |
gate health and safety standards for the mining |
(1969) |
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industry. The Act is enforced by the Mine Safety |
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and Health Administration of the Department |
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of Labor. |
Occupational |
29 U.S.C. and |
The Occupational Safety and Health Act, or |
Safety and |
sect; 553, 651 |
OSHA, requires all employers to provide a |
Health Act |
et seq. |
workplace that is free from recognized hazards |
(1970) |
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that cause, or are likely to cause, death or seri- |
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ous physical harm to employees. The Act also |
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establishes the Occupational Safety and |
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Health Administration, which is responsible for |
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promulgating workplace safety standards and |
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regulations for various industries. The Act is |
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enforced by the Occupational Safety and |
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Health Administration. |
Rehabilitation |
29 U.S.C. and |
The Rehabilitation Act prohibits employers that |
Act (1973) |
sect; 701 et |
receive federal grants, loans, or contracts from |
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seq. |
discriminating in their employment practices |
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against individuals with disabilities. The Act is |
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enforced by the Department of Labor. |
Starting a Systematic Program |
151 |
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Employee |
29 U.S.C. and |
The Employment Retirement Income Security |
Retirement In- |
sect; 301, |
Act, or ERISA, governs the operation of pen- |
come Security |
1001 et seq. |
sions and retirement benefits provided by pri- |
Act (1974) |
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vate-sector employers to their employees. The |
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Act does not require that employers provide |
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such benefits, but regulates the conduct of em- |
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ployers that do provide such plans. The Act is |
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enforced by the Pension and Welfare Benefits |
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Administration of the Department of Labor. |
Vietnam Era |
38 U.S.C. and |
VEVRAA makes it unlawful for employers to |
Veterans’ |
sect; 4301 |
discriminate against veterans of the Armed |
Readjustment |
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Forces in their employment practices. It also |
Assistance Act |
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provides veterans with certain reemployment, |
(1974) |
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seniority, health benefits, and pension rights |
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with respect to prior employment. The Act is |
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enforced by the Office of Veterans Employ- |
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ment and Training of the Department of Labor. |
Black Lung |
30 U.S.C. and |
This Act provides benefits to coal miners who |
Benefits Reform |
sect; 901 et |
are totally disabled due to pneumoconiosis |
Act (1977) |
seq. |
and to the surviving dependents of miners |
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whose death was a result of this disease. The |
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Act is enforced by the Office of Workers’ Com- |
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pensation Programs of the Department of |
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Labor. |
Labor- |
29 U.S.C.A. |
The Labor-Management Cooperation Act en- |
Management |
and sect; 141 |
courages the establishment and operation of |
Cooperation |
note, 173, |
joint labor-management activities designed to |
Act (1978) |
175a. |
improve labor relations, job security, and or- |
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ganizational effectiveness. The Act authorizes |
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the Federal Mediation and Conciliation Ser- |
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vice to provide assistance, contracts, and |
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grants to joint labor-management committees |
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that promote these purposes. |
Pregnancy Dis- |
42 U.S.C. and |
The PDA, a 1978 amendment to Title VII of the |
crimination Act |
sect; 2000 et |
1964 Civil Rights Act, makes it unlawful for an |
(1978) |
seq. |
employer to discriminate on the basis of preg- |
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nancy or childbirth. The Act is enforced by the |
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Equal Employment Opportunity Commission. |
(continues)
152 L AYI NG T HE FO UND AT ION FO R A SUC CES SI ON PL A NN ING AN D MANAGEM EN T PROG RA M
Exhibit 6-8. (continued)
Name of Law |
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and Date of |
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Enactment |
Legal Citation |
Brief Description of Key Provisions |
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Multi-Employer |
29 U.S.C. and |
This Act regulates the operation of multi- |
Pension Plan |
sect; 1001a et |
employer pension plans and provides protec- |
Amendments |
seq. |
tion and guarantees for the participants and |
Act (1980) |
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beneficiaries of distressed plans. The Act is en- |
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forced by the Pension and Welfare Benefits Ad- |
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ministration of the Department of Labor. |
Job Training |
29 U.S.C. and |
This Act creates Private Industry Councils com- |
Partnership Act |
sect; 1501 et |
posed of business owners and executives as |
(1982) |
seq. |
well as representatives of organized labor to |
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assist state and local governments in the devel- |
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opment and oversight of job training pro- |
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grams. The Act is enforced by the Employment |
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and Training Administration of the Department |
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of Labor. |
Migrant and |
29 U.S.C. and |
This Act governs the terms and conditions of |
Seasonal |
sect; 1801 et |
employment for migrant and seasonal agricul- |
Agricultural |
seq. |
tural workers and regulates the employment |
Protection Act |
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practices of agricultural employers, agricul- |
(1983) |
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tural associations, and farm labor contractors. |
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The Act is enforced by the Wage and Hour Di- |
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vision of the Department of Labor and by pri- |
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vate lawsuits. |
Immigration |
29 U.S.C. and |
The Immigration Reform and Control Act, or |
Reform and |
sect; 1802 et |
IRCA, requires employers to verify that appli- |
Control Act |
seq. |
cants for employment are authorized to work |
(1986) |
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in the United States. The Act provides civil and |
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criminal penalties for knowingly employing un- |
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authorized aliens and also prohibits discrimi- |
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nation based on national origin or citizenship |
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if the alien is authorized to work. The Act is |
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enforced by the Department of Justice and the |
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Immigration and Naturalization Service. |
Starting a Systematic Program |
153 |
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Economic Dis- |
29 U.S.C. and |
This Act provides federal funds to the states for |
location and |
sect; 1651–53 |
basic readjustment and retraining of workers |
Worker Adjust- |
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who have been terminated because of layoffs |
ment Assistance |
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or plant closures and who are unlikely to return |
Act (1988) |
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to their previous occupations. The Act is man- |
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aged by the Employment Standards Adminis- |
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tration of the Department of Labor. |
Employee Poly- |
29 U.S.C. and |
This Act makes it unlawful for an employer to |
graph Protec- |
sect; 2001 et |
require, request, suggest, or cause an em- |
tion Act (1988) |
seq. |
ployee or applicant to submit to a lie detector |
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test. In addition, it prohibits the employer from |
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threatening or taking any adverse employment |
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action against an employee or applicant who |
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refuses to take a lie detector test. The Act is |
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enforced by a private right of action in the fed- |
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eral district courts. |
Worker Adjust- |
29 U.S.C. and |
The Worker Adjustment and Retraining Notifi- |
ment and |
sect; 2101et |
cation Act, or WARN, requires employers with |
Retraining No- |
seq. |
100 or more employees to give 60 days ad- |
tification Act |
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vance notice to employees of impending plant |
(1988) |
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closings or layoffs involving 50 or more em- |
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ployees. The Act is enforced by private law- |
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suits. |
Whistleblower |
10 U.S.C. and |
The Whistleblower Protection statutes protect |
Protection |
sect; 2409; 12 |
employees of financial institutions and govern- |
Statutes (1989) |
U.S.C.; 1831j; |
ment contractors from discriminatory and re- |
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31 U.S.C. and |
taliatory employment actions as a result of |
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5328; 41 |
reporting violations of the law to federal au- |
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U.S.C. 265. |
thorities. The Act is enforced by the Wage and |
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Hour Division of the Department of Labor. |
Americans with |
42 U.S.C. and |
The Americans with Disabilities Act, or ADA, |
Disabilities Act |
sect; 12101 et |
makes it unlawful for an employer with 15 or |
(1990) |
seq. |
more employees to discriminate against quali- |
|
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fied individuals with disabilities with respect to |
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hiring, compensation, terms, conditions, and |
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privileges of employment. The Act is enforced |
|
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by the Equal Employment Opportunity Com- |
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mission. |
(continues)
154 L AYI NG T HE FO UND AT ION FO R A SUC CES SI ON PL A NN ING AN D MANAGEM EN T PROG RA M
Exhibit 6-8. (continued)
Name of Law |
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and Date of |
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Enactment |
Legal Citation |
Brief Description of Key Provisions |
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Older Workers |
29 U.S.C. and |
This amendment to the Age Discrimination in |
Benefit Protec- |
sect; 623 et |
Employment Act makes it unlawful for an em- |
tion Act (1990) |
seq. |
ployer to discriminate with respect to employee |
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benefits on the basis of age. It also regulates |
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early retirement incentive programs. The Act is |
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enforced by the Equal Employment Opportu- |
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nity Commission. |
Civil Rights Act |
42 U.S.C. and |
The Civil Rights Act of 1991 amended the |
(1991) |
sect; 1981 et |
1964 act, and the Americans with Disabilities |
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seq. |
Act (ADA), to allow compensatory and punitive |
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damages, but places caps on the amounts that |
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can be awarded. The Act also provides for jury |
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trials in suits brought under these laws. |
Family and |
29 U.S.C. and |
The Family and Medical Leave Act, or FMLA, |
Medical Leave |
sect; 2601 et |
requires that employers with 50 or more em- |
Act (1991) |
seq. |
ployees provide up to 12 weeks of unpaid |
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leave, within any 12-month period, to employ- |
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ees for the care of a newborn or adopted |
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child, for the care of a seriously ill family mem- |
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ber, or for treatment and care of the employ- |
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ee’s own serious medical condition. The Act is |
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enforced by the Wage and Hour Division of |
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the Department of Labor. |
Congressional |
2 U.S.C. and |
When many of the above laws were enacted, |
Accountability |
sect; 1301 et |
Congress was expressly exempted from com- |
Act (1995) |
seq. |
pliance. The Congressional Accountability Act |
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extends coverage of eleven laws to Congress |
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in its capacity as an employer. |
Source: Originally downloaded from Labor Policy Association. (1997). U.S. Employment Laws. Website: http/www.lpa.org/lpa/ laws.html. Washington, D.C.: Labor Policy Association. See also http://www.dol.gov/asp/programs/guide.htm.
described to middle managers and other stakeholders. If they do not give special attention to the communication strategy, so as to make the business goals and the policies and procedures clear, they risk broad-scale failure of the plan. Human resource practitioners cannot do it all. They need to work with the CEO and senior executive team—and sometimes with external consultants as well—to craft a communication strategy that explains how the SP&M program works and why it exists.
Starting a Systematic Program |
155 |
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Summary
Starting up a systematic SP&M program usually requires an organization’s de- cision-makers to:
▲Conduct a risk analysis and build a commitment to change.
▲Clarify the desired program roles of management, employees, facilitators, and participants.
▲Prepare a program mission statement.
▲Write a program policy and procedures.
▲Identify groups targeted for program action, both initially and subsequently.
▲Clarify the roles of the CEO, senior managers, and others.
▲Establish program priorities.
▲Address the legal framework in succession planning and management.
▲Plan strategies for rolling out a succession planning and management program.
The next steps in starting the program are covered in the following chapter. They include preparing a program action plan, communicating it, training management and employees for enacting their roles in the program, and conducting program kickoff meetings, program briefing sessions, and counseling periods.
C H A P T E R 7
R E F I N I N G T H E P R O G R A M
Beyond startup, some additional steps will usually need to be taken before a systematic succession planning and management (SP&M) program becomes operational. These steps include:
▲Preparing a program action plan
▲Communicating the action plan
▲Conducting SP&M meetings
▲Training on SP&M
▲Counseling managers to deal with SP&M issues uniquely affecting them and their work areas
This chapter briefly reviews each topic listed above, providing tips for effectively refining an SP&M program in its early stages.
Preparing a Program Action Plan
Setting initial program priorities is only a beginning. Turning priorities into realities requires dedication, hard work, and effective strategy. Preparing a program action plan helps conceptualize the strategy for implementing systematic SP&M in the organization.
An action plan activates and energizes an SP&M program. It is a natural next step after setting program priorities because it indicates how they will be met.
Components of an Effective Action Plan
An action plan is akin to a project plan. It answers all the journalistic questions:
▲Who should take action?
▲What action should they take?
▲When should the action be taken?
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Refining the Program |
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▲Where should the action be taken?
▲Why should the action be taken?
▲How should action be taken?
In this way, an action plan provides a basis for program accountability.
How to Establish the Action Plan
Take several steps when establishing an action plan. First, list priorities. Second, indicate what actions must be taken to achieve each priority. Third, assign responsibility for each action. Fourth, indicate where the actions must be performed. Fifth and finally, assign deadlines or time indicators to indicate when the actions should be completed—or when each stage of completion should be reached. The result of these steps should be a concrete action plan to guide the SP&M program. (Fill in the worksheet appearing in Exhibit 7-1 to clarify the program action plan.)
Communicating the Action Plan
Few results will be achieved if an action plan is established and then kept secret. Some effort must be made to communicate the action plan to those affected by it and to those expected to take responsibility for participating in its implementation.
Problems in Communicating
Communicating about an SP&M program presents unique problems that are rarely encountered in other areas of organizational operations. The reason: many top managers are hesitant to share information about their programs widely inside or outside their organizations. They are reluctant to share information outside the organization for fear that succession plans will reveal too much about the organization’s strategy. If an SP&M program is closely linked to, and supportive of, strategic plans—and that is desirable—then revealing information about it may tip off canny competitors to what the organization intends to do.
They are reluctant to share information inside the organization for fear that it will lead to negative consequences. High-performing or high-potential employees who are aware that they are designated successors for key positions may:
▲Become complacent because they think advancement is guaranteed. This is called the crown prince phenomenon.