On February 21, 2012, the Supreme Court of the United States granted certiorari to review the Seventh Circuit’s definition of "Supervisor" under Title VII as stated in Vance v. Ball State University.
The Supreme Court's decision will have a sweeping effect on employer liability for hostile environment claims under Title VII. Employer liability for most hostile environment claims depends on whether the alleged harassment was perpetrated by a supervisor or coworker. Employers are strictly liable for harassment inflicted by supervisors (although they can assert an affirmative defense when the harassment does not result in a tangible employment action). But, in coworker hostile environment claims, the plaintiff must show that the employer has been negligent either in discovering or remedying the harassment. Thus, employer liability is substantially expanded where the alleged hostile environment was created by a supervisor.
The critical issue, therefore, is the definition of "supervisor" under Title VII. Presently, there is a split among the Circuits as to the proper definition of "supervisor". Some Circuits, like the Seventh Circuit in Vance, have held that “supervisor” includes only those individuals with the power to directly affect the terms and conditions of the plaintiff’s employment, which primarily consists of the power to hire, fire, demote, promote, transfer, or discipline an employee. Other Circuits, as well as the Equal Employment Opportunity Commission, have greatly expanded the definition of "supervisor" (and, concomitantly, employer liability) to include employees who have the authority to direct the plaintiff's daily activities.
The Supreme Court will resolve this Circuit split and will address whether supervisor liability under Title VII applies to harassment by those whom the employer vests with authority to direct and oversee an employee’s daily work, or is limited only to those employees who have the power to hire, fire, demote, promote, transfer, or discipline an employee.
Although a briefing schedule and oral arguments have not been set, employers should be aware that the legal landscape for Title VII hostile work environment claims may change in the coming months. We will keep you advised of this issue and the Supreme Court's ruling.
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