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Supreme Court lowers bar for adverse actions

June 2024 employment law letter
Authors: 

Mark Wiletsky, Holland & Hart LLP

Can an employee sue under Title VII of the Civil Rights Act of 1964 to challenge a lateral transfer, even if the transfer doesn’t result in a loss of pay? According to a recent U.S. Supreme Court decision, the answer is yes. Employers transfer employees, or take other actions, for a variety of reasons. Until recently, as long as those decisions didn’t significantly or materially affect the employees’ terms and conditions of employment, they didn’t have a viable discrimination claim. That standard is no longer the law of the land. Now, if there was “some harm” as a result of a transfer or another action, and the action was based on an employee’s protected characteristic, they can assert a discrimination claim.

Transfer leads to loss of prestige

From 2008 to 2017, Sergeant Jatonya Clayborn Muldrow worked in a coveted position in the specialized Intelligence Division of the St. Louis Police Department. In 2017, her new commander replaced her with a male officer and transferred her to a uniformed role in another department.

Although Muldrow’s rank and pay remained unaltered, the responsibilities, privileges, and schedule of her new position significantly differed. In her previous role, she worked in a “premier position” with high-ranking officials on department priorities in the Intelligence Division. Her new role, she claimed, was less prestigious and focused more on administrative tasks.

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