LITIGATION ALERT: THE CAT’S PAW THEORY — Expanding Employer Liability for Discriminatory Acts

The United States Supreme Court recently rendered an important decision that will have wide-ranging implications related to potential employer liability in connection with unlawful discrimination claims.  In Staub v. Proctor Hospital, the Court held that an employer may be held liable on a discrimination claim when it elects to terminate an employee if such termination is based on the actions of a biased lower-level supervisor, even if the ultimate decision to terminate was made by an upper-level representative without any discriminatory motive.  The Court’s holding is best understood by examining the facts involved in the case.