Paid Suspension Not Adverse Employment Action Under Title VII, According to Third Circuit Court of Appeals

In Jones v. Southeastern Pennsylvania Transportation Authority, the Third Circuit Court of Appeals concluded that a paid suspension is not an adverse employment action in the “substantive discrimination context.” A predicate for a discrimination claim under the various anti-discrimination laws, requires the plaintiff to show she suffered an “adverse employment action,” generally described as an action or incident substantially serious to alter an employee’s compensation, terms, conditions, or privileges of employment. In the absence of an adverse employment action, a discrimination claim fails. Now, a paid suspension, as determined by the Circuit Court, is not significantly sufficient to affect the employment relationship to create liability under Federal and Pennsylvania State anti-discrimination laws.

Facts and Analysis

The plaintiff, Michelle Precia Jones, brought suit in federal district court claiming discrimination under Title VII of the Civil Rights Act of 1964 (Title VII), the Pennsylvania Human Rights Act (PHRA), the 14th Amendment to the U.S. Constitution, common law wrongful termination, and retaliation in violation of the Family Medical Leave Act. Initially, the defendant employer, Southeastern Pennsylvania Transportation Authority suspended plaintiff with pay during an investigation – and subsequently without pay following an investigation – for submitting falsified time records.

The district court held that the initial paid suspension was not an adverse employment action within the context of the employment discrimination laws. The Third Circuit Court of Appeals affirmed. In looking to the rulings of other Circuits, such as the Second Circuit Court of Appeals (covering New York, Connecticut, and Vermont), the Third Circuit concluded that a “paid suspension pending an investigation of an employee’s alleged wrongdoing does not fall under any of the forms of adverse action identified in Title VII’s substantive provision.”

The Circuit Court also affirmed the District Court’s dismissal of plaintiff’s other claims.

Practical Considerations

While an employer considers possible discipline for an employee or decides to conduct an investigation in an anticipation of possible discipline, it may well want to using a paid suspension as an effective tool or remedy. Based on the conclusion reached by the Court in Jones, a paid suspension would not constitute an adverse employment action to substantiate a discrimination claim.

Gibbons Employment & Labor Law Department attorneys regularly advise on workplace matters and handle related litigation.

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