The major legal issues pertaining to academic employment are examined. Four areas affecting higher education are analyzed in depth: employment practices, equal pay, developing issues under Title IX of the Education Amendments of 1972; and financial exigency. In addition, guidelines for evaluating current institutional academic employment practices are provided. Specific attention is directed to: the order of proof and the burdens of proof for both plaintiffs and defendant colleges in academic Title VII (Civil Rights Act of 1964) cases; the general attitude of the federal courts toward employment discrimination litigation involving colleges; how courts review decision-making procedures and criteria in academic Title VII cases; statutes used by college faculty to challenge alleged salary discrimination and the kind of proof each party must provide; cases brought against colleges under these statutes; problems involved in creating or modifying salary policies; trends in judicial review of salary policies at colleges; the provisions and history of Title IX, recent federal cases, and regulations establishing a college's responsibilities under this law; and the case law on financial exigency and institutional prerogatives and obligations to faculty. An 11-page bibliography of cases, statutes, books and periodicals is included. (SW)