Longtime UPS employee's retaliation claim denied by 10th Circuit

A UPS employee who had sued the company for race discrimination became the subject of a formal investigation by the HR department and was given a disciplinary notice, after which he lost his yearly pay raise. He promptly filed a second lawsuit claiming the internal investigation was in retaliation for his initial discrimination lawsuit. Although he ultimately lost both cases, the U.S. 10th Circuit Court of Appeals (whose rulings apply to all Colorado, New Mexico, Utah, and Wyoming employers) took the time to explain at length how an employee should prove retaliation when there's no direct evidence to support his claim.

Background

Charles Payan, a Hispanic man who worked for UPS in Utah since 1991, began his legal saga by suing his employer for race discrimination in 2014. A few months later, UPS opened an investigation of him for altering his subordinates' time cards.

Payan was a business manager for UPS. All UPS drivers were supposed to take a 30-minute lunch and not work more than eight hours without specific prior approval. To ensure compliance with both the U.S. Department of Transportation (DOT) break regulations and avoid paying overtime, Payan apparently began altering time cards without prior permission. After a lengthy investigation, UPS determined he had violated the company's integrity policy and presented him with a disciplinary notice.