What Is a Tangible Employment Action? How Could It Affect Your Business?

Tangible employment action is a term used in labor law to refer to an employment decision that has a significant economic or status impact on the employee. Examples of tangible employment action include hiring, firing, promotion, demotion, reassignment with significantly different responsibilities, and a decision causing a significant change in benefits.

Tangible employment action is important to consider when dealing with legal issues in the workplace. This is because employers must be especially careful when taking tangible employment action where discrimination might be an issue. For example, if an employee has provided ample evidence that discrimination was a factor in the employment decision, then such an action could be found to be illegal.

Examples of Tangible Employment Action

Examples of tangible employment action include:

• Hiring an employee
• Firing an employee
• Demoting or transferring an employee to a position with lower pay or fewer benefits
• Suspending an employee without pay
• Reducing an employee’s pay
• Giving an employee a negative performance review

What Are the Consequences of Taking Tangible Employment Action?

Employers who take tangible employment action against an employee may be held liable if it is found that an employer engaged in illegal discrimination while taking such action. This means that it is important for employers to be aware of potential discrimination issues when taking tangible employment action. Furthermore, it is advisable to document any tangible employment action taken in order to protect the employer from legal liability.

Want to explore this concept further? Ask Legalpedia AI — get a plain-English explanation instantly, free.

It is also important to note that employers may face legal action if they take retaliatory tangible employment action against an employee. Retaliation occurs when an employer takes action against an employee, such as demotion or termination, in response to the employee’s complaints or activities related to discrimination.

Why Employers Should Take Care When Taking Tangible Employment Action

Employers should be aware of the potential legal risks that may arise from taking tangible employment action. While it is important to make sure that any employment decision is legally sound, employers should also be mindful of potential discrimination issues that may arise from the decision. Additionally, employers should ensure that all employment actions are properly documented in order to protect the employer from potential legal liability.

Taking into consideration the potential consequences related to taking tangible employment action, it is important for employers to ensure that they are well-informed of the relevant labor laws and regulations in order to protect themselves from any legal issues that may arise.

Related Legal Concepts

Understanding tangible employment action is closely connected to several key employment law concepts. The Equal Employment Opportunity Commission (EEOC) frequently investigates claims involving tangible employment actions, particularly when they may violate the Age Discrimination in Employment Act (ADEA) or other civil rights statutes. These actions become especially significant in at-will employment relationships, where the scope of employment and specific cause of action must be carefully evaluated to determine if discrimination occurred.

The Bottom Line

Tangible employment action represents employment decisions with significant economic or status consequences that can expose employers to discrimination liability. Understanding this concept is crucial for recognizing when workplace decisions cross the line from routine management into legally actionable territory. For guidance specific to your situation, always consult a qualified, licensed attorney.