DB FPX 8410 Assessment 4 Free Download DB FPX 8410 Assessment 4 Propose Preventative Measures to Avoid Legal Liability Student name Capella University DB-FPX8410 Addressing Problems in Human Resources and Compliance Professor Name Submission Date Propose Preventative Measures to Avoid Legal Liability As one of the major technology companies that conduct their business activities in several states, CapraTek has become exposed to a lot of legal liability after one of its employees, Mona Sims has filed a complaint against the company claiming discriminatory behavior and wage differences based on gender. Female employees also claimed that in their complaint letter, they earned about 30 percent less compared to their male counterparts in the same positions. CapraTek leaders had failed to put adequate preventative actions to ensure they dealt with the inequities. As Saram et al. (2024) described, the lack of preventative measures that include regular pay equity audit and open compensation policies predisposes pay inequities to happen. These actions would have enhanced adherence to the Equal Pay Act, minimized the chances of lawsuits, and indicated that CapraTek values fairness and equity in the workplace. Summary of Salient Facts The grievance Mona Sims has submitted contains a number of urgent accusations, which illustrate organizational imbalances and malpractices in the practices of the CapraTek Company. The female employees, such as Sims, claimed that they were paid about 30 percent lower than their male counterparts who were doing the same job. Gender discrimination that violates federal law is also evident by the fact that the finance director confessed that the majority of male workers received higher salaries regularly. Sexual harassment was also incidences in the day, with sexually inappropriate remarks like, Looking hot today, Mona, Shake it, baby, from the male colleagues that hampered the working conditions of female employees, as they could not work in a safe and respectful setting. Failure by CapraTek to enforce preventative measures, such as reporting mechanisms, pay equity audit is also mentioned in the complaint. Therefore, the claims indicate wage discrimination and a hostile working environment that compromises safety and compliance in the workplace. Multiple Viable Legal Liability In the complaint letter, CapraTek has numerous legal liabilities in the case of Mona Sims. The 30% salary gap between female and male workers in the company in similar positions is a direct breach of the laws of Title VII of the civil rights act of 1964 and the Equal Pay Act of 1963 (Washienko, 2020). Also evident in the documented cases of sexual harassment are the Title VII violations, since they create a hostile work environment based on sex. Therefore, CapraTek faces a high risk of litigation, financial, and reputational losses in case the problems are not resolved with the help of remedial measures, ethical principles, and change of the corporate culture toward equity and respect. Federal Laws or Regulations in the USA The US has passed several important federal acts designed to protect employees against discrimination and harassment at work. The Civil Rights Act of 1964 forbids discrimination in employment choices based on sex, race, color, religion, and national origin; Title VII of the law is applied by the equal employment opportunity commission (U.S. Equal Employment Opportunity Commission, 2025a). The act clearly indicates that employers are not allowed to engage in adverse employment practices, including hiring, dismissing, or promoting employees, due to the characteristics that are being safeguarded (Reuters, 2024). In the recent cases of enforcement, it is demonstrated that it is on the lookout, such as a settlement of 1.2 million dollars with a national retail company due to the exposure of Black employees to racial harassment and unfavorable working conditions (U.S. Equal Employment Opportunity Commission, 2025a). The federal initiatives reflect the interest of the government in ensuring compliance, fairness, and accountability in the work environment in the nation. The 1963 EPA was explicit on the issue of sex-based wage discrimination by imposing a directive that men and women who do substantially similar work in the same environment should be paid equally. The EPA does not allow employers to pay employees differently on the basis of sex on jobs that demand equal skills, effort, responsibilities, and working conditions (U.S. Equal Employment Opportunity Commission, 2025b). Profitable cases of EPA violations demonstrate the gravity of compliance, such as AT&T paying 45 million in the 1970s, and Home Depot paying 65 million in 1997, to settle an almost 25,000-woman case (Fontinelle, 2022). EPA is still instrumental in promoting gender equity, as well as enhancing accountability in the American working places. Potential Harm to the Company The complaint, like the one filed by Mona Sims, which has been substantiated, puts CapraTek in high legal, economic, and reputational risks. Discrimination lawsuits may cost between 40,000 and 300,000, and higher settlements may occur when the case is a class action, whereas federal statutes allow even more penalties, depending on the size of the employer (Kingsley and Kingsley, 2024; Novian and Novian LLP, 2024; U.S. Equal Employment Opportunity Commission, 2025c). Vorecol (2024) demonstrated that the problem of discrimination at work is closely connected with the rate of employee turnover, as one technology company lost close to 20% of the working population in six months after a publicly reported discrimination incident. The operational and financial risks are not limited to the legal penalties, and the leaders can also interfere with productivity and destroy the trust of the stakeholders. The reputational damage might also add to the staffing and recruitment costs of CapraTek, since the potential candidates might not even want to work with a company that is linked to unfair actions. Biased workplace cultures decrease morale and employee engagement, whereas the emotional and psychological implications, including stress, anxiety, and depression, influence the overall well-being of workers in a negative way (Yang and Liu, 2021). Discrimination also destroys the spirit of teamwork and cooperation, and a lot of toxic environment is created that will hamper future development of an organization (Devadoss Law Firm, 2020). The instability in the organization, decline
