Yesterday, the U.S. Supreme Court unanimously ruled that it will be easier for workers to sue their employers for discrimination if they are forced to move within the organization.
The lawsuit was filed by a St. Louis police sergeant who claimed he was transferred to a less prestigious position because he was a woman, even though he maintained the same rank and salary. Lower courts have previously ruled that employees must prove that the transfer caused problems in terms of pay, status or career prospects, but this week’s Supreme Court ruling means that discrimination lawsuits lowered the standard for how much harm an employee must prove in order to be considered.
Justice Elena Kagan wrote in her opinion that “to succeed in a Title VII case, an employee must show some harm from the forced transfer, but he does not have to show that the injury meets the materiality test. No,” he said.
The decision will affect human resources departments across the country, experts say. luck CHROs are applying new levels of scrutiny and foresight to employee-related decisions that previously did not require deep consideration, carefully documenting decisions, and limiting the scope of their engagement with the company. Needs to be expanded.
Tiffany Cox Stacey, employment attorney and office management shareholder at Ogletree Deakins, says, “HR needs to be a little more involved when companies are considering HR actions that may not seem out of the ordinary at first glance.” “There is,” he says.. “Companies often reorganize and move people around, and they always do it for very good reasons. So sometimes we don’t look at it as closely as we should.”
In many cases, human resources departments are already heavily involved in reviewing promotion or termination decisions to avoid discrimination claims, and are careful to document the reasons behind these decisions. Cox Stacey recommends that HR departments apply the same best practices to all transfers and be aware of employee dissatisfaction that may result from reassignments. If an employee does not wish to be transferred, it is essential that the HR team works with their supervisor to clearly document the reasons for the transfer and demonstrate that no discrimination is involved.
“That way, HR becomes the very first line of defense to be able to provide evidence as to why the company had to do what it had to do,” Cox-Stacey said. says.
Lauren Hertz, a partner at the law firm Jenner & Block, said the Supreme Court’s decision means HR leaders will have to work directly with more employees than ever before. He says bosses at all levels will look to human resources for guidance.
“We may be talking about lower-level managers who weren’t previously involved in the kinds of decisions that could trigger Title VII. But with this new standard, they’re less likely to be exposed to potential liability. There’s more of a connected decision-making part,” she says.
The court’s ruling could apply beyond unwanted transfers to other personnel decisions, such as leadership opportunities, mentoring programs and employee benefits, Hertz said. This means that choosing companies that are legally considered benign will require more strategy and clarity from HR departments going forward.
“We’ll really have to wait and see what guidance we get from the lower courts on the exact contours of that,” Hertz said. Until then, companies should “pay close attention to ensuring that decisions are made for the right reasons, not the wrong reasons, and are properly documented and supported.” ” she says.
Paige McGloughlin
paige.mcglauflin@fortune.com
@payment
Today’s issue was edited by Emma Burley.
around the table
A roundup of the most important HR headlines.
– Bankers can revoke accepted offers, but this can be costly. As hiring activity ramps up, financial professionals are amassing millions of dollars in “retirement funds.” bloomberg
– NPR’s senior editor has resigned after publishing scathing criticism of the media company. wall street journal
– Amazon lost hundreds of workers in Arlington last year, reneging on a promise to add 2,500 jobs at its Virginia headquarters in exchange for tax subsidies. washington post
water cooler
Everything you need to know luck.
Puppet picketing. writers behind Sesame Street unanimously voted in favor of a strike. Unless a new contract can be negotiated by Friday. —chloe burger
Fruitless. CEO of Dropbox says employers are increasingly forcing it RTO obligations for staff create harm. —Oriana Rosa Royle
Talent war. A Goldman Sachs executive left the bank to take a new senior role, the company said. Top female worker bleeding profusely. —Luisa Beltran
Protect telecommuting. Singapore legislates work style flexibility—Employees will be able to request reduced work weeks, remote options and asynchronous schedules starting December 1 of this year. —Jane Tie
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