Like all people, supervisors make mistakes. If one of those mistakes gives an employee the impression of illegal bias, the company could be in serious trouble. A silver lining:

Correcting it quickly can keep the company off the hook. Here’s what happened in one recent court case:

After a truck driver was involved in an on-the-job accident, her manager made the decision to demote her. However, the company’s policy did not call for a demotion after the first such offense.

When upper management learned about the mistake, the employee was put back in her old position and given back pay to cover the amount she lost while working in the lower position.

But before the reversal went into effect (21 days after the demotion), she filed a complaint with the EEOC — claiming she was demoted because of her race — and took the company to court.

Was corrective action enough?

The woman claimed the demotion — even if it was temporary — was an “adverse action” and caused her to suffer depression and anxiety.

The court didn’t buy it. She got her job back, along with back pay. By timely correcting the mistake, the company was able to avoid a discrimination charge.

Note: The key word is “timely.” If the woman was kept in the lower-level job for an extended period of time, that might’ve been enough to constitute an adverse action.

Cite: Jackson v. UPS, Inc.

Tags: corrective action, demotion