In a decision that will be hailed by workers’ rights advocates and provoke grumbling among business groups, the Supreme Court ruled that the timeframe in which those seeking damages against a former employer over “constructive discharge” can sue does not begins when the employee officially resigns.

Constructive discharge refers to a process by which an employer forces an employee to quit by making his or her job intolerable through harassment or discrimination.

Generally, employees who make such claims have 180 days after the last act of harassment to file suit with the Equal Employment Opportunity Commission (EEOC) or up to 300 days in states that have their own agencies for dealing with such claims.

But it’s not exactly clear when the clock starts on that timeframe.

The case before the court actually dealt with a postal worker who, like all federal employees, is subject to a strict timeframe for filing suit: 45 days. Saying that he had been told to either retire or be relocated at much lower pay, he filed suit shortly after he resigned, alleging racial discrimination.

The court rejected the Postal Service’s contention that the clock should have started two months earlier, when he was presented with the resignation proposal. Instead, in a 7-1 decision, Green v. Brennan, the court reasoned that the resignation itself amounted to the last alleged instance of harassment.

Conservative Justice Clarence Thomas was the lone dissenter in the case. Thomas rejected the notion that the resignation itself was an act of discrimination, and that only the employer’s actions could be construed as such.

Although the case did not deal specifically with the 180 day timeframe in place for private sector employees, legal observers say the ruling will guide other courts’ decisions on such cases for all types of employers.

Brian Netter, an attorney with Mayer Brown in Washington, D.C., told the Society for Human Resource Management (SHRM) that the decision highlights the importance of keeping a paper trail documenting exactly when employees resign.

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