Legal Definitions - tangible employment action

A tangible employment action refers to a significant decision made by an employer that directly and substantially changes an employee's job status, compensation, or benefits. These are concrete actions that have a clear, measurable impact on the terms and conditions of an individual's employment.

This concept is particularly important in employment law, especially in cases involving discrimination or harassment under statutes like Title VII of the Civil Rights Act. When a supervisor takes a tangible employment action against an employee, the employer is often held directly responsible for that action, making it more difficult for the employer to avoid legal liability.

Examples of tangible employment actions include, but are not limited to, the following:

• Demotion with a Pay Cut: Imagine a regional sales director who is suddenly demoted to a junior sales representative role, resulting in a 30% reduction in salary and the loss of all supervisory responsibilities.

  This illustrates a tangible employment action because it involves a significant, adverse change in the employee's job title, duties, and compensation, directly altering their employment status and financial well-being.

• Revocation of a Key Benefit: Consider an employee whose employment contract included a significant annual bonus tied to company performance, which is abruptly eliminated for their position without a legitimate business reason, despite the company meeting its targets.

  This is a tangible employment action because the employer has removed a valuable, agreed-upon benefit that had a direct financial impact on the employee, fundamentally changing the compensation terms of their employment.

• Indefinite Unpaid Suspension: An employee is placed on an indefinite unpaid suspension pending an internal investigation, effectively halting their income and preventing them from performing any job duties for an extended period.

  This constitutes a tangible employment action because it directly and immediately impacts the employee's compensation and their ability to work, representing a significant and adverse change in their employment status, even if temporary.

Conversely, minor inconveniences or changes that do not significantly alter employment status, such as a negative performance review (without accompanying adverse action), a slight change in office location within the same building, or being assigned less preferred tasks without a change in pay or title, are generally not considered tangible employment actions on their own.