On August 18, 2023, the U.S. Court of Appeals for the Fifth Circuit expanded the types of employment actions that may constitute “adverse employment action” under Title VII in Hamilton v. Dallas Cnty., 5th Cir. en banc. No. 21-10133, 8/18/23. Overruling its nearly 30-year precedent that actionable employment actions under Title VII must relate to “ultimate employment decisions,” the Fifth Circuit held that a plaintiff need only show that they were discriminated against with respect to hiring, firing, compensation, or the terms, conditions, or privileges of employment, even if such actions were not ultimate employment actions.

In Hamilton, nine female correctional officers sued the Dallas County Sheriff’s Department asserting that they were subjected to disparate treatment due to the County’s sex-based scheduling policy under which only male officers were given full weekends off. The County moved to dismiss, staking its argument on precedent from Dollis v. Rubin, in which the Fifth Circuit specified that an adverse employment action for Title VII discrimination must consist of “ultimate employment decisions,” such as hiring, granting leave, discharging, promoting, and compensating. The County argued that the Plaintiffs failed to show they suffered an adverse employment action because the County’s work scheduling policy did not affect the job duties, compensation, or benefits of the Plaintiffs. In granting the Court’s motion to dismiss, the U.S. District Court for the Northern District of Texas concluded that changes to an employee’s work schedule, such as the denial of weekends off, are not an ultimate employment decision. On initial appeal, a Fifth Circuit panel, relying on the Dollis precedent, affirmed; however, it urged the Fifth Circuit en banc to re-examine the “ultimate employment decision” requirement.

The Fifth Circuit en banc—reversing and remanding the district court’s decision in Hamilton and vacating its Dollis decision—held that a plaintiff plausibly alleges a disparate treatment claim under Title VII if she pleads discrimination in hiring, firing, compensation, or the terms, conditions, or privileges of her employment without any need to also show an “ultimate employment decision.” The Court keyed in on the statutory language of Title VII, noting that “nowhere does [the statute] say, explicitly or implicitly, that employment discrimination is lawful if limited to non-ultimate employment decisions.” Rather, the Court elaborated, Title VII prohibits discrimination in certain specified ultimate employment decisions (e.g., hiring, discharging, compensation), but it also makes it unlawful for an employer to otherwise discriminate against an employee with respect to the “terms, conditions, or privileges of employment.” The Court found that their “ultimate-employment-decision test ignores this key language.”

Considering this premise, the Court determined that the Plaintiffs sufficiently pled discrimination because a policy requiring female officers but not male officers to work weekends could constitute sex discrimination in the terms, conditions, or privileges of employment. On this point, the Fifth Circuit here reached a decision similar to that of the D.C. Circuit in Chambers v. D.C. The opinion in that case, which concerned a discriminatory job transfer, did, however, acknowledge that while other circuits have addressed a similar question concerning the necessary showing a plaintiff must make to plausibly allege discrimination regarding a job transfer, “those circuits…speak with discordant voices when it comes to the sort of harm that can support a claim…”

Ultimately, in coming to its conclusion, the Fifth Circuit left “for another day” the question of what “precise level of minimum workplace harm a plaintiff must allege” to constitute actionable discrimination. The Court’s open-ended decision thus produces one obvious implication: the Fifth Circuit can likely expect to see more cases involving debate over whether the kinds of actions that do not rise to the level of an “ultimate employment action” are nonetheless sufficient to trigger Title VII liability. The absence of a solid limiting principle invites plaintiffs to test the boundaries of the law in determinations over what workplace effects could be considered terms and conditions of employment. The Court, for its part, acknowledged that Title VII is not meant to be a general civility code used to police ordinary workplace interactions; however, it is yet to be determined exactly what guardrails the Fifth Circuit will ultimately set for the types of workplace conduct actionable under Title VII.

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Photo of Steven J. Pearlman Steven J. Pearlman

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower Practice. Steven’s national practice focuses on defending companies in federal and state courts and in arbitration fora against the full spectrum of employment-related claims, including claims of executives; restrictive covenant violations; employee raiding; theft of trade secrets; whistleblower retaliation under the Sarbanes-Oxley Act, the Dodd-Frank Act and similar state laws; and wage-and-hour violations, including class, collective and PAGA actions.

Steven has successfully handled trials in multiple jurisdictions; prevailed in seeking and defending against applications for temporary restraining orders and preliminary injunctions; defended one of the largest Illinois-only class actions in the history of the federal courts in Illinois (over 90k putative class members); and prevailed following his oral arguments before federal and state appellate courts. He brings his litigation experience (beginning in 1998) to bear in counseling clients to minimize risk and avoid or prepare for success in litigation.

Investigations. Reporting to boards of directors, their audit committees, CEOs and in-house counsel, Steven conducts sensitive investigations and has the unusual experience of testifying in federal court in connection with investigations. His investigations have involved complaints of sexual harassment involving C-suite officers; systemic violations of employment laws and company policies; and fraud, compliance failures and unethical conduct.

Thought Leadership and Accolades. Steven was named Lawyer of the Year for Chicago Labor & Employment Litigation in the 2023 edition of The Best Lawyers in America. He is a Fellow of the College of Labor and Employment Lawyers. Chambers has reported:

  • Steven is “one of the best in the country and has a lot of experience”;
  • Steven is as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field”;
  • He is thoughtful, attentive and demonstrates an acute understanding of matters top of mind for business-minded general counsel; and
  • “He is someone who can navigate the twists and turns of litigation without difficulty.”

Steven was 1 of 12 individuals selected by Compliance Week as a “Top Mind.” Earlier in his career, he was 1 of 5 U.S. lawyers selected by Law360 as a ”Rising Star Under 40” in the area of employment law and 1 of “40 Illinois Attorneys Under Forty to Watch” selected by Law Bulletin Publishing Company. Steven is a U.S. Library of Congress Burton Award Winner for “Distinguished Legal Writing.”

Steven was appointed to Law360’s Employment Editorial Advisory Board and selected as a Contributor to Forbes.com. He has appeared on Bloomberg News (television and radio) and Yahoo! Finance, and is often quoted in leading publications such as The Wall Street Journal. The U.S. Chamber of Commerce has engaged Steven to serve as lead counsel on amicus briefs to the U.S. Supreme Court and federal circuit courts of appeal.

In 2024, Steven received the Excellence in Pro Bono Service Award from the United States District Court for the Northern District of Illinois and the Chicago Chapter of the Federal Bar Association.

Photo of Atoyia Harris Atoyia Harris

Atoyia Harris is Senior Counsel in Proskauer’s Labor and Employment Law Department, Co-Chair of the Black Lawyer Affinity Group, and a member of the Women’s Alliance Steering Committee. She represents employers in all aspects of employment law, including litigation, counseling, compliance, and workplace…

Atoyia Harris is Senior Counsel in Proskauer’s Labor and Employment Law Department, Co-Chair of the Black Lawyer Affinity Group, and a member of the Women’s Alliance Steering Committee. She represents employers in all aspects of employment law, including litigation, counseling, compliance, and workplace investigations.

With over a decade of experience, Atoyia provides strategic guidance to help clients manage workplace crises and achieve favorable outcomes in complex, high-stakes disputes. She has successfully defended employers in cases across jurisdictions and forums at both the trial and appellate levels. Atoyia is recognized by Chambers USA as “Up and Coming” and by The Legal 500 for her work, reflecting her leadership and expertise in employment law.

Leveraging her litigation background, she also advises clients on risk mitigation, helping to prevent issues before they escalate. Atoyia regularly conducts investigations and trainings on discrimination, harassment, retaliation, and other employment-related matters, and counsels employers on employment and separation agreements, reductions-in-force, WARN Act compliance, workplace policies, and DEI initiatives.

An active leader in the legal community, Atoyia serves as Chair of the Employment Law Committee for the International Association of Defense Counsel, Chair of the Young Lawyers Board for the Federal Bar Association’s New Orleans Chapter, and Chair of the Diversity and Inclusion Committee for the Defense Research Institute (DRI). She has also served as President of the Vernon Crawford Bay Area Bar Association and on the Executive Board of the Greater New Orleans Louis A. Martinet Society.

Atoyia earned her J.D. with an International Law Certification from Loyola University New Orleans College of Law, where she served on the Moot Court Board and the Loyola Law and Technology Journal. She also clerked for the Honorable Jay C. Zainey of the U.S. District Court for the Eastern District of Louisiana and the Honorable Robin Giarrusso of the Orleans Parish Civil District Court. She was a member of the award-winning Robert F. Wagner Labor and Employment Moot Court Team.

Before law school, Atoyia received her Bachelor of Music in Industry Studies (classical piano emphasis) from Loyola University New Orleans, where she was also a member of the women’s basketball team.