Supreme Court Clears the Way for Retaliation Claims

5/29/08

In a recent 7-2 decision, the U.S. Supreme Court held that an assistant manager at a Cracker Barrel restaurant who claimed that he was fired for complaining about alleged race discrimination against another employee could sue his employer under 42 USC § 1981 (commonly referred to as "Section 1981"). CBOCS West, Inc. v. Humphries. Section 1981, which was originally enacted in the post-Civil War era, provides that "[a]ll persons within the jurisdiction of the United States shall have the same right in every State and Territory to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 ...". Federal courts have long held that this statute prohibits racial discrimination in employment. However, the Supreme Court had not previously decided whether it prohibits retaliation against a person for complaining about race discrimination. This ruling affirms a January 2007 decision of the Seventh Circuit Court of Appeals in Chicago.

 

Humphries is significant for employers because it both makes it easier for would-be plaintiffs to file retaliation lawsuits and increases employers' potential liability in such cases. Other federal laws, notably Title VII, prohibit employers from retaliating against employees who complain about discrimination. However, Title VII includes certain relatively short time limits and other procedural requirements with which a plaintiff must comply before filing suit. (Humphries could not pursue his claim under Title VII because he did not meet these requirements.) Additionally, Title VII limits the amount of money a plaintiff can recover as damages. Those procedural requirements and limits on damages do not apply under Section 1981.

 

The decision in Humphries is also notable because the plaintiff, Hedrick Humphries, failed to produce enough evidence of actual race discrimination to take that claim to a jury. Despite this, the Seventh Circuit held that he could proceed to trial on his retaliation claim. The case serves as a reminder to employers that even unfounded complaints of discrimination can give rise to a retaliation lawsuit. Consequently, employers should proceed with caution whenever taking adverse action against an employee who has raised a discrimination complaint.