Employee Rights and

Discipline
 Introduction
’ HR plays a crucial role in safeguarding the rights of
both employees and employers, especially when issues
arise. This chapter delves into HR's responsibilities in
ensuring the protection of these rights, which
continually evolve alongside changes in the workplace
due to societal norms, technological advancements,
and legal refinements.
Employee Rights Legislation and HRM
Implications:

’ Various laws have been enacted to provide specific

protections to employees, including the Privacy
Act, Drug-Free Workplace Act, Employee
Polygraph Protection Act, and Worker
Adjustment and Retraining Notification Act.

’ Each law addresses different aspects of employee

rights and imposes obligations on employers.
 1. The Privacy Act:
’ Establishment of Personnel Files: Organizations
create and maintain personnel files for employees,
containing relevant information such as
applications, evaluations, and disciplinary records.
Originally, the contents of these files were known
only to those who had access to them—usually
managers and HRM personnel.

’ Employee Access Rights: The Privacy Act of 1974

grants federal employees the right to inspect their
personnel files periodically to ensure accuracy
and review letters of recommendation.
1. The Privacy Act:
’ State Legislation: State laws often mirror the Privacy
Act, extending similar rights to employees of state
governments and private businesses.

’ Transition to HRIS: Many organizations now store

employee records electronically through HR
Information Systems (HRIS), ensuring accessibility
while maintaining privacy and security.
 1. The Privacy Act:
’ Access Restrictions: Certain restrictions apply, such as
employees waiving their right to review specific
information and adherence to review procedures.
personnel files generally are not permitted to leave the
HRM area. an employee can’t simply demand to
immediately see his or her file; there is typically a
twenty-four-hour turnaround time. Consequently,
organizations frequently establish special review
procedures.
’ For example, whether the employee can review the file
alone or only in the presence of an HRM representative is
up to each organization.
2. The Fair Credit Reporting Act:
’ Credit Report Checks: Employers must notify job
candidates of their intent to check credit reports and
obtain permission before accessing this information.

’ Purpose of Checks: Credit reports provide insights into

an individual's character and reputation, but their use must
be relevant to job requirements.

’ Compliance Requirements: Employers must adhere to

specific procedures outlined in the Fair Credit Reporting
Act when obtaining and using credit reports for
employment decisions.
 3. The Drug-Free Workplace Act:
’ The Drug-Free Workplace Act of 1988 aims to prevent
substance abuse in the workplace. It applies to
individuals and organizations with federal contracts.
Certain employees in companies regulated by the
Department of Transportation and the Nuclear
Regulatory Commission must undergo drug testing.
’ Policy Requirements: Organizations covered by the act
must establish and disseminate drug-free workplace policies,
outlining expectations and consequences for noncompliance.
’ Challenges and Compliance: Compliance with the act can
be challenging for organizations, requiring them to gather
employee information and implement drug testing policies
and implementing substance abuse awareness programs.
 4. The Polygraph Protection Act:
’ Prohibition of Polygraph Testing: Private
sector employers are prohibited from using
polygraph tests in all employment decisions.

’ Exceptions and Regulations: Limited use of

polygraph tests is permitted in specific
circumstances, such as investigations into
theft, with strict regulations governing their
administration and employee rights.
 4. The Polygraph Protection Act:
’ Employees have the right to refuse the test -
without fear of retaliation from the employer.

’ If an employee agrees to take the test, they

must receive a list of questions in advance and
have the right to challenge the results if they
believe the test was administered improperly.
5. The Worker Adjustment and Retraining
Notification Act:
’ Advance Notice Requirement: Employers with 100
or more employees must provide 60 days' advance
notice before plant closures or significant layoffs,
ensuring affected workers and officials are informed.

’ Penalties for Noncompliance: Failure to provide

advance notice may result in financial penalties,
including compensation for affected employees.

’ These legislative measures highlight the complex

landscape of employee rights and the corresponding
responsibilities of HR professionals in ensuring
compliance and fair treatment within the workplace.
Current Issues Regarding Employee
Rights:
1. Social Media:
- Lack of protection for employees' negative
comments about employers on platforms like Facebook.

- Different outcomes by the National Labor Relations

Board (NLRB) based on whether posts involve
discussing terms and conditions of employment with
other employees.

- Challenges for employers due to evolving

technology and inadequate laws.
- Need for employers to craft social media policies
addressing monitoring, respectful comments, legal
repercussions, privacy settings, and use of company
name or images.

- Impact of Social Media Policies: Balancing

productivity and morale hinges on the ongoing
debate over banning or restricting social media at work,
while navigating legal pitfalls like defamation and
conflicts of interest.
2-Drug Testing
- High rates of substance abuse in the U.S. workforce
prompt many organizations to voluntarily implement
drug testing.

- Over 40 percent of full-time adult employees are tested

at the time of hire, and an additional 29 percent are
tested randomly.

- It's difficult to find a major company today that doesn’t

conduct some form of drug testing. Major companies
like CVS, Costco, and Target conduct drug testing
for both current and prospective employees.
- Drug testing aims to identify substance abusers to
provide assistance to current employees or avoid
hiring them in the first place.

- Substance abusers are more likely to miss work, file

workers’ compensation claims, be involved in work-
related accidents, and be less productive.
-Some organizations report increased
productivity after implementing drug testing
policies.

-HRM plays a crucial role in issuing policies on

substance abuse, communicating them to
employees, and ensuring clarity on
expectations, testing conditions,
consequences, and handling procedures. These
policies help create a positive atmosphere and
address concerns about legality and employee
privacy.
 3-Honesty Tests
- Employers use honesty tests, also known as
integrity tests, to evaluate past dishonest
behavior and attitudes toward dishonesty
in applicants.
- These tests primarily focus on theft and
substance abuse.
- Applicants may inadvertently admit to past
dishonesty due to the nature of the questions.
- Honesty tests are cost-effective compared
to other investigative methods.
- Despite concerns about validity and adverse
impact, honesty tests have gained popularity.
- Research into their effectiveness is promising,
although questions about fairness remain.
- Many organizations utilize variations of
honesty tests in their selection processes.
4-Whistle-Blowing
-Whistle-blowing occurs when an employee
reports the organization to an outside agency for
what the employee believes is an illegal or
unethical practice.

-Employees of most private employers lack

federal whistle-blower protection but may be
protected under individual state statutes.
-Passage of the Sarbanes-Oxley Act gave
employees protection for whistle-blowing
activities if they perceive company
wrongdoing.

-Many firms have adopted policies to

permit employees to identify problem
areas safely.
5-Employee Monitoring and Workplace
Security
- Technology enables employee monitoring, raising
questions about privacy and ethical boundaries.

- Workplace security aims to protect company assets

like property, data, and productivity.

- Cases illustrate the tension between protecting

company interests and respecting employee rights.

- Employers have the right to monitor employee

activities, including email and internet usage, if
policies are clearly communicated.
- The use of technology like RFID badges and
GPS tracking devices raises concerns about
employee privacy

- Companies must establish clear policies on

monitoring employee behavior and inform
employees about their rights and
responsibilities.

- The ethical debate around employee

monitoring will continue as technology
evolves.
6-Workplace Romance
- Workplace romances are common but can lead to
various complications. such as accusations of
favoritism, breaches of ethics, and low
productivity.
- Companies implement policies to manage
workplace relationships and prevent issues
such as favoritism and harassment.
- Concern over these complications has led some
companies to implement fraternization policies
that forbid relationships between all coworkers or
between certain groups of coworkers such as
employees in the same department. Other
companies deal with the issue by asking affected
employees to sign contracts stating that the
relationship is consensual.
 The Employment-at-Will Doctrine
Nineteenth-century common law that permitted employers to
discipline or discharge employees at their discretion.
’ Under the employment-at-will doctrine, an employer can
dismiss an employee:
“(1) for good cause,
(2) for no cause, or even
(3) for a cause morally wrong,
(4) without being guilty of a legal wrong.”
’ Of course, even then, an employer can’t fire on the basis of
race, religion, sex, national origin, age, or disability.
Although this doctrine has existed for more than one hundred
years, the courts, labor unions, and legislation have attempted
to lessen its use. In these instances, jobs are compared to private
property. That is, individuals have a right to these jobs unless
the organization has specified otherwise.
 Exceptions to the principle of
employment at will
Although employment-at-will thrives in contemporary
organizations, five exceptions can support a wrongful discharge
suit:
1. Contractual relationship
2. Statutory considerations
3. Public policy violation
4. Implied contracts
5. Breach of good faith.

Let’s take a closer look at these.

 Exceptions to the principle of
employment at will
1-Contractual Relationship :
A contractual relationship exists when employers and
employees have a legal agreement regarding how employee
issues are handled.

Under such contractual arrangements, discharge may occur

only if it is based on just cause. Where a distinct definition of
just cause does not exist, just cause can be shown under
guidelines derived from labor arbitration of collective-
bargaining relationships
 Exceptions to the principle of
employment at will
2-Statutory Considerations: In addition to this
contractual relationship, federal legislation may play a
key role. Discrimination laws such as those
discussed in the previous chapter may further
constrain an employer’s use of at-will
terminations. For example, an organization cannot
terminate an individual based on his or her age just
because such action would save the company some
money.
 Exceptions to the principle of
employment at will
’ 3-Public Policy Violation: Another exception to the
employment-at-will doctrine is the public policy violation.
Under this exception, an employee cannot be terminated for
failing to obey an order from an employer that can be
construed as an illegal activity. Should an employee refuse to
offer a bribe to a public official to increase the likelihood of the
organization obtaining a contract, falsify time cards, or illegally
dump hazardous waste, that employee is protected.
’ Furthermore, employers cannot retaliate against an employee
for exercising his or her rights (such as serving on a jury).
Accordingly, employees cannot be justifiably discharged for
exercising their rights in accordance with societal laws and
statutes.
 Exceptions to the principle of
employment at will
’ 4-Implied Employment Contract The fourth
exception to the doctrine is the implied employment
contract.
’ An implied contract is any verbal or written statement
made by members of the organization that suggests
organizational guarantees or promises about continued
employment. These implied contracts, when they exist,
typically take place during employment interviews or are
included in an employee handbook.
 Exceptions to the principle of
employment at will
’ 5-Breach of Good Faith: The final exception to the
employment-at-will doctrine is the breach of good faith.
Although this is the most difficult of the exceptions to prove, in
some situations an employer may breach a promise. In one
noteworthy case, an individual employed more than twenty-
five years by the National Cash Register Company (NCR) was
terminated shortly after completing a major deal with a
customer. The employee claimed that he was fired to eliminate
NCR’s liability to pay him his sales com- mission. The court
ruled that this individual acted in good faith in selling the
company’s product and reasonably expected his commission.
Although NCR had an employment- at-will arrangement with
its employees, the court held that his dismissal and NCR’s
failure to pay commissions were breaches of good faith.
Discipline and Employee Rights
What Is Discipline?
Discipline refers to a condition in the organization
where employees conduct them- selves in
accordance with the organization’s rules and
standards of acceptable behavior.
For the most part, employees discipline
themselves by conforming to what is considered
proper behavior because they believe it is the
reasonable thing to do.
Factors to Consider When Disciplining
Before we review disciplinary guidelines, we should look
at the major factors to consider in having fair and
equitable disciplinary practices. The following seven
contingency fac- tors can help us analyze a discipline
problem.
1- Seriousness of the Problem
2- Duration of the Problem
3- Frequency and Nature of the Problem
4- Extenuating Factors
5- Degree of Socialization
6- History of the Organization’s Discipline Practices
7. Management Backing
 Factors to Consider When Disciplining
1- Seriousness of the Problem
How severe is the problem? For example ,dishonesty is
usually considered a more serious infraction than reporting
to work twenty minutes late.

2- Duration of the Problem

Have there been other discipline problems in the past, and
over how long a time span? The violation does not take
place in a vacuum. A first occurrence is usually viewed
differently from a third or fourth offense.
Factors to Consider When Disciplining
3- Frequency and Nature of the Problem
Is the current problem part of an emerging or continuing
pattern of disciplinary infractions? We are concerned
with not only (1) the duration but also (2) the pattern of
the problem.
Continual infractions may require a different type of
discipline from that applied to isolated instances of
misconduct.
They may also point to a situation that demands far
more severe discipline to prevent a minor problem
from becoming a major one.
Factors to Consider When Disciplining
4- Extenuating Factors
Do extenuating circumstances relate to the problem?
The student who fails to turn in her term paper by the
deadline because of the death of her grandfather is
likely to have her violation assessed more leniently than
will her peer who missed the deadline because he
overslept.
Factors to Consider When Disciplining
5- Degree of Socialization To what extent has
management made an earlier effort to educate the person
causing the problem about the existing rules and
procedures and discipline
6- History of the Organization’s Discipline Practices
How have similar infractions been dealt with in the past
within the department? Within the entire organization?
Has there been consistency in the application of discipline
procedures? Equitable treatment of employees must take
into consideration precedents within the unit where the
infraction occurs, as well as previous disciplinary actions
taken in other units within the organization. Equity
demands consistency against some relevant benchmark.
Factors to Consider When Disciplining
7. Management Backing :
If employees decide to take their case to a higher level in
management , will you have reasonable evidence to
justify your decision? Should the employee challenge your
disciplinary action, you need data to back up the
necessity and equity of your action and to feel confident
that management will support your decision. No
disciplinary action is likely to carry much weight if
violators believe that they can usually challenge and
successfully override their manager’s decision.
Disciplinary Guidelines
All human resource managers should be aware of
disciplinary guidelines. In this section, we briefly describe
them.

-Make disciplinary action corrective rather than punitive.

The object of disciplinary action is not to deal out
punishment. The object is to correct an employee’s
undesirable behavior. Punishment may be a necessary
means to that end, but one should never lose sight of the
eventual objective.
Disciplinary Guidelines
Use a progressive discipline approach.
disciplinary action may vary depending on the situation, it
is generally desirable for discipline to be progressive. Only
for the most serious violations will an employee be
dismissed after a first offense.
Typically, progressive discipline begins with a written
verbal warning and proceeds through a written warning,
suspension, and, only in the most serious cases,
dismissal.
 Disciplinary Guidelines
’ - Immediate Response. The impact of a disciplinary
action fades as the time between the infraction and
the penalty’s implementation lengthens. The more
quickly the discipline follows the offense, the more likely
the employee is to associate the discipline with the offense
rather than with the manager imposing the discipline.

’ As a result, it is best that the disciplinary process begin

within a reasonable time frame after the violation is
noticed. Waiting too long may result in the employee
not making a connection between the infraction and
the consequence.
 Disciplinary Guidelines
Advance Warning.
The manager has an obligation to give advance warning prior to initiating
formal disciplinary action. This means the employee must be aware of the
organization’s rules and accept its standards of behavior. Disciplinary
action is more likely to seem fair to employees when they have a clear
warning that a given violation will lead to discipline and what that
discipline will be.
Consistent Action.
Fair employee treatment also demands that disciplinary action be
consistent.
When rule violations are enforced in an inconsistent manner,(1) the rules
lose their impact. (2) Morale will decline, and (3) employees will
question the competence of management. (4) Productivity will suffer as
a result of (5) employee insecurity and anxiety. All employees want to
know the limits of permissible behavior, and they look to their managers’
actions for such feedback.
Disciplinary Guidelines
Advance Warning.
The manager has an obligation to give advance
warning prior to initiating formal disciplinary
action.
This means the employee must be aware of the
organization’s rules and accept its standards of
behavior. Disciplinary action is more likely to seem
fair to employees when they have a clear warning
that a given violation will lead to discipline and what
that discipline will be.
 Disciplinary Guidelines
Impersonal Application.
Penalties should be connected with a given violation,
not with the personality of the violator. That is,
discipline should be directed at what employees
have done, not the employees themselves.
As a manager, you should make it clear that you are
avoiding personal judgments about the employee’s
character. You are penalizing the rule violation, not
the individual, and all employees committing the
violation can expect to be penalized.
 Disciplinary Actions
discipline generally follows a typical sequence of four steps:
(1)written verbal warning, (2) written warning, (3) suspension, and
(4) dismissal

1. written verbal warning

Temporary record that a verbal reprimand has been given to an
employee.
2. written warning
First formal step of the disciplinary process.
3. suspension
A period of time off from work as a result of a disciplinary process.
4. dismissal
A disciplinary action that results in the termination of an employee.