EEOC Information on Adverse Actions:
Retaliation, defined as any adverse employment action taken by an employers as a result of an employee's opposition to illegal employment practices, is forbidden under Title VII and many other federal and state nondiscrimination laws. Such adverse employment actions can include termination, suspension, demotion, or loss of normal work assignments.
However, federal appeals courts do not agree on whether or not an employer's negative performance evaluation of an employee can constitute ad adverse employment action.
The Tenth Circuit Court of Appeals recently ruled that a negative personnel evaluation can be an adverse employment action under Title VII. The case was Toth v. Gates Rubber Co.
In this case the plaintiff had worked as a chemical engineer for a manufacturing company. In 1996-1997 she filed several charges with EEOC, claiming retaliation, discrimination on account of age, sex, and national origin, and violations of the Equal Pay Act. She claimed that her complaints to EEOC and to the company led to continued harassment and retaliation and that this included additional negative job evaluations, being placed on probation, and ultimately being terminated.
The company said that it fired the woman because of her "below standard" job evaluation.
The woman sued under Title VII claiming that she was denied four promotions, paid less than her co-workers, and terminated because of her sex and national origin. She also claimed retaliation, a hostile work environment, and violations of the Equal Pay Act. The court granted summary judgment to the employer on all the claims, and the plaintiff appealed. On appeal, the company argued that the woman's negative performance evaluation could not constitute ad adverse employment action.
The appeals court said, "This court liberally construes the phrase 'adverse employment action'" under Title VII. Further, "This court has held that actions having ad adverse impact on future employment opportunities can constitute adverse employment actions," the court said, and cited Gunnell v. Utah Valley State College, 10th Cir., 1998.
The court found sufficient evidence of retaliation and reinstated the woman's retaliation claim, noting that the plaintiff received her first negative performance evaluation two days after filing her first EEOC charge. In addition, she continued to receive poor evaluations during the time she filed the supplemental charges.
The court also found that the woman had evidence that the company's explanation for her poor evaluations was pretextual, citing her testimony that her supervisor told her that "as a result of my creating so much negative stuff around the company...there was no other way to go" and that her EEO complaints "had made the year miserable."
While the court revived her discriminatory discharge claim, finding that she was qualified for the position, it dismissed her claims of failure to promote, wage discrimination, and breach of contract.
The Tenth Circuit covers Colorado, Kansas, New Mexico, Oklahoma, Utah, and Wyoming.
In another case, the Seventh Circuit Court of Appeals reached a different conclusion, but it was four years ago. The case was Smart v. Ball State University, 7th Circuit, 1996.
In this case, the woman worked as a tree surgeon after she had completed a three-year training program. She claimed that after she filed a sex discrimination charge with EEOC she was the target of retaliation in the training program by receiving unfavorable reviews. Her negative performance reviews were not joined with any other adverse action. The claim was dismissed on summary judgment and she appealed.
The Seventh Circuit ruled that negative performance evaluations by themselves cannot constitute an adverse employment action. The court said, however, that negative performance reviews could be used as evidence of adverse employment actions when such reviews contribute to demotions, transfers, or the failure to promote.
The court said that the woman's performance evaluations were neutral tools designed to identify strengths and weaknesses in order to further the learning process, and affirmed the district court's dismissal of the case.
The Seventh Circuit covers Illinois, Indiana, and Wisconsin.