Wednesday, January 15, 2014

Sixth Circuit: Be Careful What You Ask For -- Granting Employee’s Request to Transfer Can Be an Adverse Employment Action As Much as Denying the Same Request

Yesterday, a divided Sixth Circuit Court of Appeals reversed summary judgment for an employer in an equal protection, Title VII and ADEA lawsuit on the grounds that the employer’s granting of a requested transfer to the plaintiff could constitute an adverse employment action where the working conditions of the new position presented “some level of objective intolerability.”  Deleon v. Kalamazoo County Road Comm’n, No.12-2377 (6th Cir. 1-14-14).  In that case, the plaintiff had applied for a lateral job transfer to Equipment and Facilities Superintendent, but requested a $10K compensation increase because the working conditions were more unpleasant than his current job.  In particular, the garage was filled with diesel fumes and soot, etc. which eventually lead to headaches and bronchitis.  He was initially denied the transfer because of inferior computer skills, but was then granted the transfer (with no raise in pay) after the resignation and declination of the first two individuals hired.  He was then evaluated poorly on his computer and a few other skills and took an eight-month medical leave of absence for stress, during which time he was terminated.  The majority found that the plaintiff had presented sufficient facts to show that he suffered an adverse employment action when he was “involuntarily” transferred into the Superintendent position for which he had previously applied because its working conditions could be described as “more arduous and dirtier.”  The Court concluded that "the key focus of the inquiry should not be whether the lateral transfer was requested or not requested, or whether the aggrieved plaintiff must ex tempore voice dissatisfaction, but whether the 'conditions of the transfer' would have been 'objectively intolerable to a reasonable person.'" 

Importantly, all three causes of action [brought by the plaintiff] require that the aggrieved plaintiff show that he suffered an adverse employment action. An adverse employment action has been defined as a “materially adverse change in the terms and conditions of a plaintiff’s employment.” White v. Burlington N. & Santa Fe Ry. Co., 364 F.3d 789, 795 (6th Cir. 2004) (en banc) (citation omitted). A “mere inconvenience or an alteration of job responsibilities” is not enough to constitute an adverse employment action. Id. at 797 (citing Kocsis v. Multi-Care Mgmt. Inc., 97 F.3d 876, 885-87). The Commission, and indeed the district court, relied on the proposition that “[r]eassignments without changes in salary, benefits, title, or work hours usually do not constitute adverse employment actions.” Kocsis, 97 F.3d at 885. Nevertheless, a reassignment without salary or work hour changes, however, may be an adverse employment action if it constitutes a demotion evidenced by a “less distinguished title, a material loss of benefits, significantly diminished material responsibilities, or other indices that might be unique to a particular situation.”

In White v. Burlington Northern & Santa Fe Railway Co., 548 U.S. 53, 71 (2006), the Supreme Court had held that “[w]hether a particular reassignment is materially adverse depends upon the circumstances of the particular case,” and “should be judged from the perspective of a reasonable person in the plaintiff’s position, considering ‘all the circumstances.’”  While the Sixth Circuit has previously recognized that a lateral transfer could constitute an adverse employment action when the working conditions became so objectively intolerable that it constituted a constructive discharge, the Court “has not foreclosed the possibility that a transfer not rising to the level of a constructive discharge might nonetheless constitute a tangible employment action.”  In particular, “an employee’s transfer may constitute a materially adverse employment action, even in the absence of a demotion or pay decrease, so long as the particular circumstances present give rise to some level of objective intolerability.”
 
We must also address the issue that Deleon applied for the position before being “involuntarily” transferred. Semantically, the argument follows that an action cannot be truly “adverse” if coveted by its actor. No case within this circuit has ruled on this precise issue. Nevertheless, our sister circuits have held that the request of a transfer, and accession to the new position, does not categorically bar a finding of an adverse employment action. . . . . . Accordingly, we conclude that under certain circumstances, a voluntary or requested transfer may still give rise to an adverse employment action.

The Court’s majority was partially influenced by the fact that the plaintiff did not receive his requested salary increase as “hazard pay.”  They also found irrelevant the fact that he did not initially object to the transfer and never withdrew his request to transfer into the position. “We are leery of a holding that would require that an involuntarily transferred employee, alleging a discriminatory work environment, must demand a transfer from the very superiors engaging in the discrimination.”

We emphasize that the key focus of the inquiry should not be whether the lateral transfer was requested or not requested, or whether the aggrieved plaintiff must ex tempore voice dissatisfaction, but whether the “conditions of the transfer” would have been “objectively intolerable to a reasonable person.”  . . .  Indeed, an employee’s opinion of the transfer, whether positive or negative, has no dispositive bearing on an employment actions classification as “adverse.”

The dissent noted simply that “[w]hen an employee voluntarily applies for, and obtains, a job transfer, his employer has not subjected him to an adverse employment action.” 

Yes, his application included a request for a higher salary and an additional employee. But he kept his application active and interviewed for the position after his supervisors told him that the job would not come with a raise or another employee.

             . . .

A retaliation claim requires the employer to do something bad to the employee—something that might “have dissuaded a reasonable worker from making or supporting a charge of discrimination.” Burlington N. & Santa Fe Ry. Co. v. White, 548 U.S. 53, 68 (2006). That concept cannot be bent and stretched to cover an employer’s decision to grant an employee’s request for a transfer. No reasonable employee in Deleon’s position would have interpreted the transfer as an act designed to prevent him from exercising his rights against anti-discrimination.

             . . .

Whatever the correct interpretation of the employment retaliation laws may be, they surely stop at this line: imposing liability on employers whether they grant or deny an employee’s request for a transfer. All would agree that today’s case is the harder one—where the employee got what he wanted—and yet, according to the majority, he still has a cognizable claim. It follows under the majority’s analysis that, when the employer denies what the employee wants, he also has a cognizable claim. . . . An interpretation of the retaliation laws that subjects employers to  liability coming and going—whether after granting employee requests or denying them—will do more to breed confusion about the law than to advance the goals of a fair and respectful workplace. Even after plumbing the depths of logic, experience, case law and common sense, I must return to this surface point: When an employee voluntarily applies for, and obtains, a job transfer, his employer has not subjected him to an adverse employment action.
NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.