Chapter Summary
The legal environment is one of the critical environmental factors that affects the management of people. This chapter first describes the U.S. legal system, including the legislative bodies, regulatory agencies, and judicial bodies whose decisions affect the legality of HRM practices. Major laws and executive orders, particularly those pertaining to elements of discrimination, are then reviewed. Four theories of discrimination are presented along with court case examples. Next, sexual harassment and the Americans with Disabilities Act are discussed. Finally, the chapter reviews what policies and practices employers may develop regarding employee safety.