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The Third Circuit (which includes Pennsylvania, New Jersey and Delaware) recently issued an employee-friendly decision in Steidle v. United States Liability Insurance Co., Inc., holding that the “materially adverse” standard used in Title VII retaliation cases also applies to retaliation claims under the Americans with Disabilities Act (ADA) and the Family and Medical Leave Act (FMLA).
Florida courts have also applied the “materially adverse” standard in retaliation cases under Title VII, the ADA, and the FMLA.
What Does “Materially Adverse” Mean?
Discrimination and retaliation claims are related, but they are not the same.
To succeed on a discrimination claim, the employee will need to prove the employer took an “adverse action” against them. Classic examples include termination, refusal to hire, demotion, or a pay cut. Other employment actions, such as a job transfer, may also qualify so long as the action caused “some harm” or material impact on the terms and conditions of employment.
Retaliation claims use a different standard. In a retaliation claim, an employee does not have to show that they were fired, demoted, or formally disciplined. Instead, the employee must show that the employer took an action that was “materially adverse.” While it may sound the same, it is a different, less demanding standard that can encompass a wider range of employer conduct.
An employer’s action is materially adverse if it “well might have dissuaded a reasonable worker from making or supporting a charge of discrimination.” In other words, a “materially adverse” action is something sufficiently negative that it could make an employee afraid to speak up, request an accommodation, take protected leave, or complain about discrimination. Materially adverse actions can include loss of opportunities, a schedule change, or increased scrutiny, and can be different in every case.
The “materially adverse” standard comes from the United States Supreme Court’s decision in Burlington Northern, a Title VII retaliation case. Title VII prohibits discrimination and retaliation based on race, color, sex, religion, and national origin. Employers continue to argue that Burlington Northern should be limited to Title VII retaliation claims and should not apply to retaliation claims under other statutes, such as the ADA or FMLA. Employers hope to avoid liability by characterizing retaliation as too minor, too indirect, or too insignificant to violate the law.
Why the Steidle Case Matters
In Steidle, the employee alleged that after taking FMLA leave and requesting disability-related accommodations, his employer retaliated by giving him a lower bonus and smaller salary increase.
The employer persuaded a district court to apply the “adverse action” standard to the FMLA and ADA claims rather than the “materially adverse” standard, and that a lower-than-expected bonus and smaller salary increase should not qualify. Most employees understand that a reduced bonus or smaller raise is not trivial, and thankfully, the appellate court rejected the employer’s narrow view and held that the materially adverse standard applies to retaliation claims under both the ADA and the FMLA.
The decision recognizes a practical workplace reality: employees may be deterred from exercising their rights if they know their employer can punish them financially, even without firing or demoting them. A reduced bonus, smaller raise, lost opportunity, undesirable schedule change, increased scrutiny, or other negative treatment can send a clear message to employees that protected activity comes at a cost. Retaliation law is designed to prevent that kind of chilling effect.
Why This Matters for Florida Employees
Retaliation can take many forms. The question is whether the employer’s action might dissuade a reasonable employee from exercising protected workplace rights. If your employer reduced your bonus, lowered your raise, changed your schedule, subjected you to increased scrutiny, disciplined you, or otherwise treated you worse after you requested a disability accommodation, took FMLA leave, or complained about discrimination, you may have a legal claim.
Amanda L. Biondolino, PLLC represents Florida employees in disability discrimination, FMLA, retaliation, and wrongful termination matters. Contact the firm to schedule a confidential consultation.
