Supreme Cout Gives Employers A Break -- Times Two!

June 24 was a good day for employers.  The Supreme Court, after much delay, handed down two opinions clarifying standards under Title VII.  In both cases limiting employees' ability to make Title VII claims.  

Not Every Superior Is A Supervisor

In the first case, the Supreme Court gave employers a break by limiting the number of people who can be personally liable in a Title VII discrimination suit.  Specifically, the Supreme Court held in Vance v. Ball State that a supervisor must be able to make hiring and firing decisions to make the employer liable.  In the same case, previously, the Seventh Circuit Court of Appeals had ruled that a supervisor must have the power to take formal employment actions against the victim (i.e., hire, fire, demote, promote, transfer, or discipline) -- as opposed to just having the ability to exercise direction over the victim's daily work.  Now, in a 5-4 decision, the Supreme Court adopted the Seventh Circuit test and held that an employee is a "supervisor" for purposes of vicarious liability under Title VII only if he or she is empowered by the employer to take tangible employment actions against the victim. You can find a copy of the Supreme Court opinion here.

Retaliation Needs To Be THE Reason the plaintiff was harmed

In University of Texas Southwest Medical Center v. Nassar, Nassar alleged that a job offer made to him was rescinded after he complained to the University about discrimination. The Fifth Circuit Court of Appeals had held that, to prove Title VII retaliation, Nassar need only show that the retaliation motivating the decision to rescind the job offer. The Fifth Circuit declined to require the plaintiff to show that retaliation was the "but for" reason he didn't get the job.

On appeal, the Supreme Court in another 5-4 decision, reversed the Fifth Circuit's decision and ruled that a plaintiff alleging retaliation under Title VII must prove that the employer's conduct did in fact cause the plaintiff's injury. 

Thankfully, this new clarity will allow plaintiffs and defendants to better assess their claims and allow lower courts to apply known standards to assess employer actions.  As always, employers should contact employment counsel immediately whenever an employee management issue raises any discrimination or retaliation issues.