A Non-Material Threat

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In Brandon v. Sage Corp., No. 14-51320 (5th Cir. Dec. 10, 2015), the Fifth Circuit addressed whether a threat to cut a supervisor’s pay in half was, by itself, a “materially adverse employment action.” The plaintiff was a manager for a truck driving school in San Antonio. She reported up, through her manager, to the company’s president. When a part-owner of the company discovered that the plaintiff had hired a transgender woman, the part-owner threatened to cut the plaintiff’s salary in half. The plaintiff resigned and sued for retaliation under Title VII. The court noted that a realistic threat to drastically reduce an employee’s pay might deter a reasonable person from supporting a claim of discrimination and, therefore, might support a retaliation claim. But, here, the plaintiff knew company policy, knew the chain of command, and knew the part-owner had no final decision-making authority. She quit before the company president could weigh in to disavow the threat. At the very least, said the court, a reasonable employee would have followed the company’s grievance process or waited to receive confirmation of whether the threat was official.

Even when someone in a position of authority shoots his or her mouth off, there might be time to walk a threat back. Give it a try.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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