Title VII of the Civil Rights Act of 1964 (Title VII) applies to employers with 15 or more employees and makes it unlawful for an employer, “to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual” with respect to “compensation, terms, conditions, or privileges of employment” on the basis of race, color, religion, sex, or national origin.[i] But, is there a limit? Federal Circuit Court precedent holds that there is.

When it comes to claims of discrimination in the workplace under Title VII the standard of review is whether the alleged conduct discriminates against the individual as to all “terms, conditions, or privileges of employment.” Courts review this broad standard by looking at whether the employer’s action(s) impose materially significant disadvantages on the employee(s).

From an employee perspective, the burden for claiming an employer’s actions impose materially significant disadvantages is a heavy lift. Workplaces are rarely idyllic, and the mere fact that an employee is displeased by an employer’s act – or omission – is not enough to elevate that act or omission to the level of a materially adverse employment action. Typically, when it comes to claims of discrimination in terms, conditions or privileges, a court will want to see material impacts to an employee in the form of financial harm or disadvantage, negative impacts to the employee’s career opportunities, and/or less desirable working conditions (e.g., location, schedule, assignments). Because employers are not tethered to every whim of their employees, a necessary legal review will typically be conducted with an eye toward separating significant harms from those generally considered trivial.

Help lower the risk associated with claims alleging discriminatory/retaliatory conduct by considering the following:

• One of the best ways to avoid claims of discrimination/retaliation is to make business decisions (e.g., recruiting, pay, hiring, promotions, job assignments, terminations) based on objective non-discriminatory criteria.
• Train supervisory personnel on how to handle business decisions (e.g., hiring, transfers, promotions) in an objective manner focusing on business needs and objective outcomes.
• Maintain legally compliant written anti-discrimination/retaliation policies.

[i] 2 U.S.C. § 2000e-2(a)(l).