The U.S. Supreme Court ruling in Muldrow v. St. Louis has opened employers to discrimination charges for “lateral transfers” (moves from one part of operations to another) even without significant harm to the employee.
A new head of the St. Louis Police Department’s Intelligence Division transferred a plainclothes female sergeant with an outstanding record and years of experience to a uniformed job supervising patrol officers so he could install a male replacement. The transferred officer lost no wages or rank. Nevertheless, she sued the City for sex discrimination under Title VII of the Civil Rights Act of 1964 (Title VII) because the new position took away the prestigious responsibilities, schedule, and perks of the prior position.
The trial court and Court of Appeals upheld her transfer, finding it did not produce a “materially significant disadvantage.” The U.S. Supreme Court disagreed. It ruled that Title VII has no requirement that an action affecting the terms and conditions of employment, taken for a prohibited reason, such as gender, have a “significant” effect. It therefore reversed the lower court rulings, giving employers a guide to what kind of transfers are discriminatory:
This ruling is a caution to all employers to avoid transferring employees to a new position against their will if the employee will be “worse off.” They should apply the same consideration when re-assigning an employee returning from a protected leave, such as California’s Family Rights Act (CFRA) or the federal Family and Medical Leave Act (FMLA).
Take-Aways:
To avoid a charge of discrimination, employers should scrutinize any planned lateral transfers that an employee opposes to ensure the person will not be worse off.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
- Staffing Agency Meltdown: Discrimination Settlement Shuts Down National Firm (April 12, 2024)
- 72 Million Reasons Not To Mess With Women: Employer Agrees to End Widespread Sex Discrimination (February 16, 2024)
- Take Heed: Responding to Harassment and Discrimination Complaints Correctly (July 28, 2023)
Helena Kobrin
May 10, 2024