Meritor Savings Bank v. Vinson

Meritor Savings Bank v. Vinson, legal case in which the U.S. Supreme Court on June 19, 1986, ruled unanimously (9–0) that sexual harassment that results in a hostile work environment is a violation of Title VII of the Civil Rights Act of 1964, which bans sex discrimination by employers. The Court also established criteria for judging such claims.

Mechelle Vinson began working for Meritor Savings Bank in 1974 as a teller-trainee. Her immediate supervisor, Sidney Taylor, was a vice president of the bank. Over the next four years, Vinson received several promotions, eventually becoming assistant branch manager. It was undisputed that her promotions were based on merit alone. In 1978 Vinson’s employment was terminated for excessive use of sick leave. She then filed suit under Title VII against Taylor and the bank, alleging that she had been subjected to sexual harassment during her tenure in the job. Vinson claimed that she had had sexual intercourse with Taylor on multiple occasions, out of fear of losing her job, and that he fondled her in front of other employees. She further alleged that Taylor had raped her several times and that he had touched and fondled other female workers. Fearing reprisal, Vinson never reported the alleged harassment. Taylor denied the allegations in their entirety and argued that Vinson’s accusations arose from a business-related dispute. The bank also denied the allegations while specifically avowing that officials were unaware of Taylor’s behaviour and that if he had acted as Vinson alleged, he did so of his own volition.

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Without resolving the opposing testimony from Vinson and Taylor, the federal district court held that Vinson was not the victim of sexual harassment, because the sexual relationship, if it existed, was voluntary. The court also addressed the issue of liability, finding that the bank was not liable, because Vinson had failed to notify bank officials of the alleged misconduct. The Court of Appeals for the District of Columbia Circuit, however, reversed in favour of Vinson, ruling that if Taylor made Vinson’s “toleration of sexual harassment a condition of her employment,” the voluntary nature of the sexual relationship was irrelevant. The court also recognized that there were two categories of actionable sexual harassment under Title VII: harassment that conditions employment benefits on sexual favours (quid pro quo) and “harassment that, while not affecting economic benefits, creates a hostile or offensive working environment” (non quid pro quo). Further, the court decided that the bank was “absolutely liable” for sexual harassment arising from the actions of a supervisor, regardless of whether officials knew or should have known about the harassment.

On March 25, 1986, the case was argued before the Supreme Court. In the majority opinion, Justice William Rehnquist affirmed that allegations of sexual harassment under Title VII may include hostile work environment claims and are not limited to instances where there has been a “tangible loss” of an “economic character.” The Court thus decided that a sexual harassment claim involving a hostile work environment is actionable under Title VII. In developing general guidelines for determining if behaviour constitutes sexual harassment, the Supreme Court noted that, most significantly, the plaintiff must have been subjected to unwelcome sexual advances. The Court added that the correct inquiry is not whether a plaintiff’s participation was voluntary but whether it was unwelcome. To this end, the justices were satisfied that the district court had not erred in allowing evidence about Vinson’s sexually provocative dress and speech, because such evidence could prove useful in evaluating whether she found sexual advances welcome or unwelcome. The Supreme Court also indicated that the harassment must have been based on gender, was sufficiently pervasive, and created a hostile work environment.

Although it provided standards for judging sexual harassment claims, the Supreme Court stopped short of creating “a definitive rule on employer liability.” It rejected the appellate panel’s decision “that employers are always automatically liable for sexual harassment by their supervisors.” However, the Court also held that the bank was not insulated from liability because it had both a nondiscrimination policy and a grievance procedure and that Vinson had failed to use the latter. The Court criticized the nondiscrimination policy, which did not specifically address sexual harassment, and it noted that the grievance procedures required employees to notify supervisors, which in this case would have been Taylor.

The Supreme Court thus remanded the case for further consideration. It was eventually settled out of court, on terms that were not disclosed.