On June 24, 2013, the U.S. Supreme Court issued its decision in Vance v. Ball State University resolving a split between federal appellate courts regarding the definition of "supervisor" for purposes of holding employers vicariously liable for harassment under Title VII. The Court affirmed the Seventh Circuit's ruling that actionable harassment by a person whom the employer deemed a "supervisor" and who had the authority to direct and oversee the victim's daily work could not give rise to vicarious liability because the harasser did not also have the power to hire, fire, demote, promote, transfer, or discipline the victim. The Supreme Court held that an employer may be vicariously liable for an employee's unlawful harassment only when the employer has empowered that employee to take tangible employment actions against the victim, i.e., to effect 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." In so holding, the Court expressly rejected the open-ended approach advocated by the Equal Employment Opportunity Commission, which would have tied "supervisor" status to the ability to exercise significant direction over another's daily work.
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