The Legal Environment of Human Resources Management 71Section 503 requires all federal contractors or subcontractors receiv-
ing funds over twenty - fi ve hundred dollars to take affi rmative action for
the employment of qualifi ed disabled persons. Enforcement is carried out
by the Department of Labor ’ s Employment Standards Administration.
Under the Rehabilitation Act, as under the ADA of 1990, a disabled per-
son is considered qualifi ed for a job if an individual analysis determines
that he or she can, with reasonable accommodation, perform the essential
functions of the job. Employers must make such accommodations unless
it can be shown that the accommodation would pose an undue hardship
on the fi rm.
Section 504 prohibits federally funded programs and government
agencies from excluding from employment an “ otherwise qualifi ed handi-
capped individual... solely by reason of handicap. ” The enforcement of
Section 504 rests with each federal agency providing fi nancial assistance.
The U.S. Attorney General is responsible for coordinating the enforce-
ment efforts of the agencies.
In 1993, the U.S. Court of Appeals for the First Circuit ruled that an
individual who suffered from morbid obesity was denied a job in violation
of Section 504 of the Rehabilitation Act of 1973 ( Cook v. State of Rhode
Island, Department of Mental Health, Retardation, and Hospitals , 1993).The Vietnam Era Veterans’ Readjustment Act of 1974
The Vietnam Era Veterans’ Readjustment Act of 1974, as amended, applies
to employers with government contracts of twenty - fi ve thousand dollars or
more. Contractors are required to take affi rmative action to employ and
advance disabled veterans and qualified veterans of the Vietnam era.
Enforcement of the act is by compliance to the Veterans ’ Employment
Service of the Department of Labor.Affi rmative Action
Many statutes, executive orders, court decisions, and administrative regu-
lations exist that prohibit employment discrimination due to race, color,
sex, national origin, religion, or disability. Employment decisions are to
be based on merit and job - related qualifi cations, not on membership in a
certain classifi cation. Equal employment opportunity requires employers
not to discriminate in the administration and execution of all HRM prac-
tices such as recruitment, selection, promotions, training, compensation,