Supreme Court to decide whether lateral job transfers can be discriminatory under Title VII

In the upcoming months, the U.S. Supreme Court will decide whether lateral job transfers, with no change in pay or benefits, violate federal civil rights law if done for discriminatory reasons.

Circuit split headed for resolution

Currently, the lower circuit courts are split regarding which discriminatory employment practices are prohibited by Title VII of the Civil Rights Act of 1964.

Some circuits follow the “adverse employment action” rule or similar doctrine, which requires an employee to prove some additional harm over and above the discriminatory transfer—generally economic harm—to sustain a Title VII discrimination claim.

Other circuits have held discriminatory transfers—even when they aren’t accompanied by reductions in pay, benefits, or other “materially significant disadvantages”—are actionable under Title VII. The U.S. 4th Circuit Court of Appeals has found discriminatory practices are unlawful under Title VII when the employee can show the employer’s conduct “had some significant detrimental effect” on the employee.

Now, in Muldrow v. City of St. Louis, Missouri, the question of whether a lateral job transfer can be actionable under Title VII—even if the employee fails to show the move caused additional injury—is squarely before the Supreme Court. It heard oral arguments on December 6, 2023, and its upcoming decision could very well affect employers across the country.

Facts