Voluntary Reinstatement and Backpay Does Not Bar Title VII Relief

Thanks to Ross Runkel's Employment Law Memo for pointing out this interesting case about whether a Title VII plaintiff can still seek judicial relief after being voluntarily reinstated and given back pay.  Not surprisingly, of course the plaintiff can still seek Title VII relief even if given voluntary backpay and reinstatement by the employer.

Here's Ross' description:

The court framed the primary issue on appeal as "whether a Title VII plaintiff who is wrongly terminated should be foreclosed from pursuing her claims where her employer eventually reinstates her with back pay." The 7th Circuit held that the answer to this question is "no."

The court reasoned, "we decline to endorse a rule that would allow employers to escape liability by merely reinstating the aggrieved employee months after termination, whenever it becomes clear that the employee intends to pursue her claims in court." The court continued, "[s]uch a rule could create an unintended economic incentive for employers to reinstate an employee who files a discrimination suit as a means to avoid Title VII penalties whenever the costs of reinstating the employee are lower than the employer's exposure in [a] Title VII suit."

That being said, an unconditional offer of reinstatement by the employer can stop the back pay clock from running.

The case is Phelan v. Cook County, No. 04-3991 (7th Cir. 09/18/2006).

PS