Refer to Additional Case 3.1. As the HR Director, you are meeting with the CEO to discuss manager compensation. You should most likely advise the CEO that:
Additional Case 3.1
You have been hired as HR Director of a company with about 100 employees. As you begin to learn about the company, you discover that female managers are paid about 20 less than their male counterparts. When you ask why, the CEO explains that men have families to support and women are earning extra income. As you review personnel files, it becomes apparent that protected-class employees are promoted less often and have longer terms between promotions and raises than white employees. A test is used as part of the promotion process, and protected-class candidates always do about 25 worse on it than white candidates. Another test is used to screen job applicants. It screens out about 25 of white male applicants and about 50 of protected-class applicants.
The firm has a hazardous products division. Traditionally, women are not hired or promoted into that division because the CEO is concerned that the toxic nature of the production process will adversely affect the female employees' reproductive processes.
A) the company is in violation of Title VII of the Civil Rights Act of 1964.
B) the firm faces legal liability for violations of the Equal Pay Act of 1963.
C) the OFCCP is probably monitoring the firm's lack of compliance and will soon be filing a lawsuit.
D) what the company is doing isn't right, but it is legal since it started before the passage of relevant legislation.
Question 2
When is an entrepreneur done collecting market research for his/her business?
A) Never
B) When the business has been operating for six months
C) When the business has been opened
D) Prior to the first sale
E) After the first sale
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