In a significant turn of events, the U.S. Court of Appeals for the Fifth Circuit has revised its long-standing test to define what adverse actions can substantiate an employee’s Title VII claim. The court arrived at this decision on August 18, 2023.
As per Title VII, an employee alleging a discrimination claim is required to have undergone an “adverse employment action”. Prior to this turning point, the Fifth Circuit held that for a successful discrimination claim, the employee had to have endured an adverse “ultimate employment decision”.
The “ultimate employment decision” – a term that previously underpinned successful discrimination claims within this circuit – referred to actions such as hiring, granting leave, discharging, promoting, or compensating.
Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, and national origin. It is pertinent in instances where a party alleges to have been aggrieved due to an unlawful employment practice. By revising the benchmark for what constitutes an adverse action, the Fifth Circuit has significantly broadened the scope for employees to claim discrimination.
As is the case with most legal revisions, this development is likely to have far-reaching consequences for both employers and employees. Employers need to be vigilant about structuring their employment practices to ensure they don’t inadvertently violate the newly interpreted provisions. On the other hand, employees now have a wider range of adverse actions to support their Title VII claims.
To fully grasp the legal implications and further potential impacts of this pertinent shift, refer to law firm McGuireWoods LLP’s comprehensive commentary on the subject here.