Employees Have New Avenue to Sue for Retaliation
June 7, 2008
by Employment & Labor Law / Employee Benefits Group
Stinson Morrison Hecker LLP
Copyright © 2008
In a case with potentially far reaching implications, the U.S. Supreme Court on May 27, 2008 held that an employee may bring a claim for retaliation under the Civil Rights Act of 1866 (42 U.S.C. § 1981) – which does not cap punitive damages – instead of having to rely on Title VII of the 1964 Civil Rights Act. CBOCS West Inc. v. Humphries.
Facts – A former African-American assistant restaurant manager brought a claim that he was discharged both because of his race and in retaliation for complaining that another assistant manager discharged an employee because of his race. The plaintiff brought his claims under both Title VII of the 1964 Civil Rights Act and Section 1981.
Procedural History – The District Court dismissed the plaintiff’s Title VII claims on procedural grounds, dismissed his direct discrimination claim under Section 1981 on the merits, and dismissed his Section 1981 retaliation claims as beyond the scope of the statute. The U.S. Court of Appeals reinstated the plaintiff’s Section 1981 retaliation claims finding them cognizable under the statute and the U.S. Supreme Court agreed to hear the case.
Statutory Language – Section 1981, enacted just after the end of the Civil War, provides that "[a]ll persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts . . . as is enjoyed by white citizens..." The 1991 Civil Rights Act amended Section 1981 and defined "make and enforce contracts” to include “the making, performance, modification, and termination of contracts, and the enjoyment of all benefits, privileges, terms, and conditions of the contractual relationship."
Court Finds Implied Retaliation Claim – Despite the absence of specific reference to retaliation claims in either the original statutory text or the 1991 amendments, the Court concluded that "the view that §1981 encompasses retaliation claims is indeed well embedded in the law."
Employer’s Arguments Rejected – In finding an implied retaliation claim, the Court rejected the employer’s arguments that a Section 1981 retaliation claim was contrary to the statutory language and created unnecessary overlap between Title VII and Section 1981. Relying on a long line of cases interpreting both Section 1981 and Section 1982, the Court found that the employer’s arguments were insufficient to depart from the Court’s prior holdings in other cases.
Bottom Line - The Court’s holding is expected to increase the number of retaliation claims as plaintiffs take advantage of the uncapped damages available under Section 1981 and the extended statute of limitations.
Stinson Morrison Hecker LLP is one of the country's largest law firms with more than 360 attorneys in more than 45-industry-focused areas. If you would like more information regarding this summary, please contact one of our Employment & Labor Law and Employee Benefits attorneys.
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