May 31 (Reuters) - Amazon.com ( AMZN ) on Friday lost an early
bid to dismiss claims that the company discriminated against a
Black event producer by limiting her job duties and placing her
on a performance improvement plan.
The decision by U.S. District Judge Arun Subramanian is
among the first to apply an April ruling by the U.S. Supreme
Court in Muldrow v. St. Louis that said workers do not have to
show a concrete injury such as a pay cut, demotion or firing to
pursue claims under the federal law banning employment
discrimination.
Keesha Anderson, an event specialist for Amazon Music from
2019 to 2022, says she was forced to quit after supervisors
sidelined her and placed her on a performance plan, or PIP, that
all but guaranteed failure.
Subramanian rejected Amazon's ( AMZN ) claim that placing Anderson on
the PIP and allegedly diminishing her role at Amazon Music were
not "adverse actions" that can form the basis of a claim under
Section 1981 of the Civil Rights Act of 1866, which bars race
discrimination in contracts.
"Although some of these actions might once have been
considered immaterial, they are now enough to state a claim" in
light of Muldrow, the judge wrote.
Amazon ( AMZN ) and a lawyer for Anderson did not immediately respond
to requests for comment. Amazon ( AMZN ) has denied wrongdoing.
The Muldrow decision involved Title VII of the Civil Rights
Act of 1964, which bars workplace discrimination based on race,
sex and other traits. The Supreme Court said Title VII applies
to any employment action that negatively impacts working
conditions and not only material decisions such as hiring and
setting pay.
Subramanian said the high court's ruling applied to claims
brought under Section 1981 because the laws use similar language
and are generally interpreted in tandem.
Anderson sued Amazon ( AMZN ) last year. She claims that during her
time with the company she was excluded from meetings and events,
had her ideas rejected, and that her duties were limited to
administrative tasks. Anderson had both white and Black
supervisors, according to court filings.
Anderson says she was placed on a PIP in 2020 because of
minor infractions she had committed, and that being required to
complete the plan barred her from being promoted or transferred.
She claims that an unidentified "whistleblower" told her that
her supervisors were conspiring to push her out, prompting her
to quit in 2022.
Amazon ( AMZN ) moved to dismiss the case, arguing that the conduct
alleged by Anderson did not amount to an adverse action.
Few courts have addressed whether workers can sue for
discrimination after being placed on a performance plan. The
Virginia-based 4th Circuit held in 2015 that a PIP cannot form
the basis of a Title VII claim, and the New Orleans-based 5th
Circuit last year said a worker's performance plan was not an
adverse action because it had no impact on his working
conditions.
Subramanian did not discuss those cases in denying Amazon's ( AMZN )
motion on Friday. But he said the heightened standard for
determining what counts as an adverse action that the 2nd
Circuit, which covers New York, and other courts had imposed
prior to Muldrow no longer applied.
"These actions adversely affected Anderson's benefits,
privileges, terms, or conditions of employment by saddling her
with more and worse tasks, tarnishing her permanent record,
dampening her prospects of a promotion or raise, temporarily
preventing her from transferring, excluding her from certain
meetings and projects, and so on," the judge wrote.
The case is Anderson v. Amazon.com Inc ( AMZN ), U.S. District Court
for the Southern District of New York, No. 1:23-cv-08347.
For Anderson: Jessie Djata
For Amazon ( AMZN ): Michael Goettig and Rodrigo Tranamil of Davis
Wright Tremaine
Read more:
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U.S. Supreme Court grapples with applying workplace bias law
to job transfers
(Reporting by Daniel Wiessner in Albany, New York)