Lead Opinion
Opinion for the court filed by Circuit Judge BROWN.
Dissenting opinion filed by Circuit Judge TATEL.
Frederick Douglas, an employee of the Department of Housing and Urban Development (HUD), argues he was discriminated against when his department head failed to recommend him for a highly coveted award. Because this is not an adverse employment action, we AFFIRM summary judgment in favor of HUD.
I.
A Presidential Rank Award, as measured by purse and prestige, is the highest recognition given to federal “senior executives” — high-level career employees. See 5 U.S.C. § 4507; 5 C.F.R. § 451.301. There are two types of Presidential Rank Awards: “(1) Meritorious Executive, for sustained accomplishment, or (2) Distinguished Executive, for sustained extraordinary accomplishment.” 5 U.S.C. § 4507(c). The number of awards given annually is tightly restricted,
The Presidential Rank Award process is labyrinthine, with numerous ways to fail, but only one to succeed. An eligible executive must be recommended by his agency; within HUD, department heads recommend employees to HUD’s Performance Review Board (“PRB”), which evaluates the candidates and then forwards a slate of prospective nominations to HUD’s Deputy Secretary and Secretary, who — at least formally- — decide which candidates will be recommended to the Office of Personnel Management (“OPM”). OPM “review[s] such recommendations and provide[s] to the President recommendations as to which of the agency recommended appointees should receive such rank.” Id. § 4507(b). The President of the United States makes the final call.
In 1999, Douglas, a black male, became HUD’s Deputy Assistаnt Secretary for Single Family Housing, a “senior executive” position. In November 2002, Assistant Secretary for Housing John Weicher, Douglas’s department head, transferred him to a different department. In December 2002, Douglas learned that Weicher had not recommended him for a Presidential Rank Award. Instead, Weicher recommended Margaret Young, a white female, who received an award.
After HUD denied relief, Douglas sued under Title VII, alleging he was discriminated against on the basis of race when Weicher failed to recommend him for a Presidential Rank Award. The district court granted summary judgment to HUD, ruling that Douglas did not suffer an adverse employment action. Douglas appeals; our review is de novo, “applying the same standards as the district court.” Tao v. Freeh,
II.
In order to present a viable claim of employment discrimination under
Because “significant” and “objectively tangible” harm is required, performance evaluations ordinarily are not actionable under Title VII; “[t]he result of an evaluation is often speculative, making it difficult to remedy. For example, a single poor evaluation may drastically limit an employee’s chances for advancement, or it may be outweighed by later evaluations and be of no real consequence.” Id. See also Taylor,
The distinction between cases in which, to establish an adverse employment action, we consider the speculativeness of the harm and those in which we do not reflects the difference between a categorical presumption and a causation requirement. Although “we do not categorically reject a particular personnel action as no-nadverse simply because it does not fall into a cognizable type,” Holcomb,
On the other hand, some actions do not obviously cause a significant change in employment status. The last example of an adverse employment action discussed in Taylor — “a decision causing significant change in benefits” — аlone requires an employee to explain how the employer’s action harmed his employment status. For employment actions that do not obviously result in a significant change in employment status — such as giving a poor performance evaluation, reassigning office space and equipment, or, for that matter, fielding a company softball team— an employee must go the further step of demonstrating how the decision nonetheless caused such an objectively tangible harm. As Russell indicates, this additional step (which, by the way, is not “newly minted,” Dis. Op. at 557, as illustrated by Russell itself) requires us to consider whether the alleged harm is unduly speculative. Showing that harm is not speculative need not be a difficult task, and it often is not. For example, a benefit such as a bonus — or, by logical extension, a pay raise — is objectively tangible because it has a “direct, measurable, and immediate effect” upon the employee’s compensation. Russell,
The Presidential Rank Award recognizes extraordinary performance. It is not earned in the ordinary course of employment for adequate or even superior work or for meeting or exceeding established goals. Instead, it is intended to reward outstanding leadership and innovation — indefinable star qualities that are by their very nature subjective. See 5 U.S.C. § 4507(e) (Meritorious Executive Award for “sustained accomplishment” and Distinguished Executive Award for “sustained extraordinary accomplishment”). Failure to make the cut for such an award cannot be deemed a significant change in responsibilities; nor would elimination from the competition affect employment opportunities in an objectively tangible way. Therefore, unlike failure to be promoted, failure to be recommended for a Presidential Rank Award is not categorically an adverse employment action.
Moreover, the inherent uncertainty in the Presidential Rank Award process means there can be no direct tie between a nomination and an award. A departmental recommendation is but a single point in the assessment, one cog in a complex machine. As observed by the district court, “of the thirty-two candidates nominated by their department heads in 1999-2004, only sixteen ultimately received an award.” In fact, Douglas himself was recommended but not selected in 2001. Because of the many moving parts involved in selecting a Presidential Rank Award winner — including multiple rounds of independent evaluation both inside and outside of HUD, with a final decision by the President — even if Weicher had recommended Douglas, it is quite uncertain whether the President ultimately would have selected Douglas to receive an Award, rendering any harm from the failure to recommend “speculative” and “difficult to remedy.” Russell,
In an attempt to escape this reasoning, Douglas cites Griffin v. Washington Convention Center,
Douglas finally cites Cones. There we held an employer’s refusal to allow an employee to compete for a job could be actionable because the refusal to advertise the position competitively was “tantamount to refusing to promote him,” and failure to promote can be an adverse employment action. Cones,
We disagree with this extension of Cones. Unlike being considered for a promotion, the question at issue in that case, being recommended for — much less receiving — the extraordinary distinction of a Presidential Rank Award is not an ordinary expectation of employment. Indeed, as explained above, under our precedent failure to be promoted categorically is an adverse employment action, meaning unlike with other types of employer decisions (such as giving a negative performance evaluation), we do not consider whether any alleged harm is unduly speculative. With this distinction in mind, Cones should be understood as closing a potential loophole in Title VII. It established that agencies may not prevent minority employees from advancing to higher positions simply by refusing to open positions to competition and laterally transferring higher ranked non-minorities. But that unobjectionable proposition cannot be read to support Douglas’s much broader argument: that a Title VII plaintiff has an actionable claim whenever he was not selected to move to the next level of competition for any award accompanied by a prize, even if entitlement is not objectively ascertainable and the decisionmaking is unavoidably subjective. See Holcomb,
In any event, Cones is inapposite because the decision whether to promote an employee is made by an employer subject — in the most part — to objective criteria, see Aka v. Wash. Hosp. Ctr.,
Finally, a few words about the dissent. Though we share his revulsion for racial animus, the secret memo scenario, apparently consequential to our colleague, is not unique to Douglas’s case, but could be offered in any case where the requirement of an adverse employment action has not been satisfied. If, for example, discovery unearthed a memo stating a supervisor would never give a black person a positive performance evaluation (and if the administrative conciliation process failed to offer relief), our precedent holds that such an evaluation would not be deemed an adverse employment action unless it “affect[ed] the employee’s grade or salary.” Taylor,
Likewise, while conceding that some non-subjective “harms” are not adverse employment actions, “such as those threatened by negative performance evaluations,” the dissent seems to suggest (without saying so directly) that Russell was
As Douglas cannot show he suffered an adverse employment action, we AFFIRM the grant of summary judgment.
So ordered.
Notes
. See 5 U.S.C. § 4507(d) ("During any fiscal year ... the number of career appointees awarded the rank of Meritorious Executive may not exceed 5 percent of the Senior Executive Service,” and "the number of career appointees awarded the rank of Distinguished Executive may not exceed 1 percent.”).
. See id. § 4507(e) ("Receipt ... of the rank of Meritorious Executive [includes] a lump-sum payment of an amount equal to 20 percent of annual basic pay,” and "[r]eceipt ... of the rank of Distinguished Executive [inlc-udes] a lump-sum payment of ... 35 percent of annual basic pay.”).
. To be sure, Weicher's decision guaranteed that Douglas would not receive an award. But, given the lack of ascertainable criteria and the boundless discretion of the President, a fact-finder could not determine whether Douglas suffered "objectively tangible harm.” Forkkio,
. Bеcause the exhaustion requirement, though mandatory, is not jurisdictional, see Munsell v. Dep’t of Agriculture,
Dissenting Opinion
dissenting:
Imagine that discovery in this case had turned up a memo from Frederick Douglas’s former supervisor, John Weicher, expressly stating that he would never nominate a black person for the Presidential Rank Award. Under this court’s holding — that disqualification from competing for a lucrative employment award is not an adverse employment action — Douglas would have no recourse to Title VII even in the face of such direct evidence of discriminatory intent. Because this result cannot be squared with Title VII, and because there is no principled difference between the hypothetical case and Douglas’s with respect to the only issue we address today — whether Weicher’s rejection of Douglas qualifies as an adverse employment action — I respectfully dissent.
It is true that “ ‘not everything that makes an employee unhappy’ ” is actionable under Title VII. Maj. Op. at 552 (quoting Russell v. Principi,
The proper analogy is thus not to a negative performance evaluation, but rather to excluding a candidate from the selection process for a promotion or a job opening, either of which would qualify as an adverse employment action. Like hiring and promotions, the Presidential Rank Award involves a formalized, multi-layered selection process for a specific, tangible employment benefit — a significant sum of money. This case is thus much like Cones v. Shalala,
Seeking to avoid the obvious implications of Cones for this case, the court attempts to distinguish the Presidential Rank Award selection process from selection processes for hiring and promotions. Relying on oft-quoted language in Burlington Industries, Inc. v. Ellerth—“a tangible employment action [for purposes of vicarious liability] constitutes a significant change in employment status, such as hiring, firing, failing to promote, reassignment with significantly different responsibilities, or a decision causing a significant change in benefits,”
The distinction the court draws fails to hold up. The court nowhere explains why actions related to “one’s work responsibilities and position,” id. at 552, fall more squarely under Title VII’s ban on discrimination in “compensation, terms, conditions or privileges of employment,” 42 U.S.C. § 2000e-2(a)(l), than do actions related to, for example, work hours, vacation time, bonuses, or any other employment benefit. See George v. Leavitt,
In any event, regardless of where the court draws the line, Burlington Industries provides no support for treating benefits differently from position and work responsibilities. Every item on Burlington Industries’ non-exhaustive list refers to the end result sought: a new job, retention of one’s job, a promotion, or a decision causing a significant change in benefits— here the President’s decision to award a substantial sum of money. If definitively barring a candidate from consideration for one of these desired outcomes constitutes an adverse employment action — as the court acknowledges with respect to promotions — then barring a candidate from consideration for any of them does.
Not only does the court’s distinction find no support in Burlington Industries, but it makes no sense. For еxample, suppose an employer asks line supervisors to nominate candidates for one available high-level vacancy and separately for one available bonus. Now suppose a line supervisor refuses to nominate a minority employee for either the promotion or the bonus, and two white employees are ultimately chosen. Under the court’s “causation requirement” the minority employee has suffered an adverse employment action as to the promotion but not as to the bonus. The minority employee would now have a Title
The court does acknowledge that because bonuses and pay have “a ‘direct, measurable and immediate effect’ ” on compensation, the loss of a bonus qualifies as an adverse action. Maj. Op. at 553. Yet the court fails to explain what it means by “loss of a bonus.” Does “loss of a bonus” refer solely to the final decision such that a bonus is actionable only if an employee can show that she in fact lost the bonus, i.e. that she would have received it but for the employer’s action? If so, then it leads to the arbitrary result in the hypothetical above. Or does “loss of a bonus” include loss of the opportunity to compete for a bonus such that an employee eliminated from competition has suffered an adverse employment action regardless of how likely it was that she would actually receive the bonus? If so, the court’s reasoning defeats its conclusion in this very case — surely an employee who obtains an award worth 35 percent of his salary in recognition of his work accomplishments has experienced as direct, measurable, and immediate an effect on his compensation as does an employee who receives a less substantial bonus. “By parity of reаsoning,” id., loss of the award through elimination from competition “likewise has such an effect,” id.
Perhaps the court means to limit its causation requirement to employer actions, like the single performance evaluation, that on their face have no obvious connection to any particular selection process. But even for such actions, I see no basis for distinguishing between hiring, firing, failing to promote, and reassignment on the one hand, and other employment benefits on the other. Nothing in our negative performance evaluation cases indicates that the analysis of an evaluation’s impact differs when the employee is worried about her ability to get a future promotion rather than a future bоnus or raise. Surely the court does not mean to suggest that the recipient of a negative performance evaluation need no longer show that the evaluation in fact played a role in taking her out of the running for a job or promotion.
Not only is there no basis for requiring a different showing for employment benefits than for promotions, but the court’s causation analysis gets it backwards. We know from Cones that the question isn’t whether absent the employer’s action the plaintiff would have gotten the benefit, but rather whether as a result of the employer’s action the plaintiff could not. Cf. Burke v. Gould,
Nor is it clear what level of certainty the court expects plaintiffs like Douglas to establish. After all, Douglas’s hope for the Presidential Rank Award was hardly a pipe dream: in the year Weicher rejected him, two-thirds of those nominated received awards, Appellant’s Reply Br. 3-4. What greater showing is now required at the summary judgment stage to permit a reasonable jury to infer that Douglas would have received the award?
Further seeking to distinguish the Presidential Rank Award from other employment decisions that involve similar selection processes, the court emphasizes that the President, as the ultimate decision-maker, enjoys unfettered discretion and is immune from suit, Maj. Op. at 554-55. But Douglas is not suing the Prеsident for denying the award; he’s suing his employer, the Secretary of Housing and Urban Development, for terminating his candidacy for an award calculated as a percentage of his HUD salary and paid for with HUD funds, Appellant’s Opening Br. at 2. True, Weicher lacked ultimate authority to grant the award, but he did have authority to ensure that Douglas was excluded — a power he exercised to Douglas’s irreparable detriment.
Finally, the court says that promotion decisions are “subject — in the most part— to objective criteria” while the Presidential Rank Award is based on subjective criteria. Maj. Op. at 554. Yet we have long recognized that promotion and hiring decisions often turn on subjective criteria, see Aka v. Wash. Hosp. Ctr.,
By focusing on the subjectivity of the award, the court exposes the fundamental flaw in its decision: it conflates the question of whether Weicher’s disqualification of Douglas was sufficiently adverse with the ultimate question of whether it was motivated by discriminatory animus. That
