CNNMoney.com
Companies Economy International Corrections Pre-market Trading After-hours Trading Winners/Losers/Actives Bonds Currencies Commodities World Markets Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Ask the Expert Ultimate Guide to Retirement Retirement Calculators Rules of Retirement Best Funds Best Places to Retire Fortune Brainstorm Tech Apple 2.0 Blog Big Tech Blog Sectors and Stocks Tech Talk Resource Guide Small Business Makeovers Questions & Answers Small Business Video 100 Best Places to Launch FSB 100 Fortune Small Business Fortune 500 Brainstorm Tech Investing Management C-Suite Rankings Main Create Portfolio Edit Portfolio Create Alerts Edit Alerts
Supreme Court: Employer liable for retaliatory acts
Unanimous Supreme Court says that employees who retaliate against a complaining employee can be held liable for money damages.

WASHINGTON (CNN) - A railroad worker who said she was punished on the job after complaining of sexual harassment won a unanimous victory Thursday at the Supreme Court, which upheld a jury award that held her supervisors accountable.

At issue was what standards should apply when business owners or government supervisors are accused of retaliating against workers claiming sex or race discrimination. A federal law known as Title VII prohibits employers from engaging in such retaliation.

"The anti-retaliation provision protects an individual not from all retaliation, but from retaliation that produces injury or harm," wrote Justice Stephen Breyer for the other eight benchmates. "We believe that there was a sufficient evidentiary basis to support the jury's verdict."

The justices expressed sympathy over claims made by Sheila White, a forklift operator hired in June 1997 on the Burlington Northern Santa Fe Railway yard in Memphis. She had experience in that position and was the only woman in her maintenance division.

Three months into her job, White complained about sexual harassment and discrimination by her male boss, who had never supervised a woman worker before. White said her foreman and other male workers made inappropriate remarks to her, among other things. Her immediate supervisor was investigated, suspended and ordered to take sensitivity training.

But, 10 days after making her allegations, White was transferred to work as a regular track laborer, a more physically demanding job. Both jobs were in the same broad employment category, and she suffered no loss in pay or benefits.

After White complained to the federal Equal Employment Opportunity Commission, she was suspended without pay for 37 days for "insubordination."

A company inquiry eventually found White had not been insubordinate and she was reinstated to her original job driving a forklift, with full back pay, in January 1998.

She later sued Burlington Northern (down $0.54 to $76.85, Charts). A federal appeals court upheld a jury verdict that concluded she had been unfairly transferred from her job and subjected to retaliation. Under federal rules, that constituted an "adverse employment action."

"Many reasonable employees would find a month without a paycheck to be a serious hardship," wrote Breyer. "And White described to the jury the physical and emotional hardship that 37 days of having 'no income, no money' in fact caused." He added, "An indefinite suspension without pay could well act as a deterrent [to complain], even if the suspended employee eventually received back pay."

Lawyers for the railroad had argued that White's job transfer -- from forklift operator to track worker -- caused her to suffer "no economic effect." The case was closely watched by businesses and worker-rights advocates. A variety of companies have petitioned the court to rule in their favor, fearing a "superprotected" class of workers who file or threaten discrimination claims would forever be protected from getting fired, transferred or disciplined.

Supporters of White counter that, without legal safeguards, companies would have the means and power to find limitless ways to punish those who complain about discrimination or other wrongdoing on the job.

The case is Burlington Northern and Santa Fe Railway v. White.

--from CNN Supreme Court Producer Bill Mears

____________________

Related: Think your boss is bad? Top of page

YOUR E-MAIL ALERTS
Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.

Or, visit Popular Alerts for suggestions.
Manage alerts | What is this?
© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.