McReynolds v. Merrill Lynch & Co.

Dist. Ct. did not err in dismissing plaintiffs-employees’ Title VII and section 1981 lawsuit, alleging that defendant-employer’s retention-incentive program that gave bonuses to plaintiffs based on prior levels of productivity discriminated against plaintiffs based on their race since bonuses produced by said program incorporated prior production levels that were product of defendant’s underlying discriminatory policies. Instant retention program was race-neutral compensation system that was keyed to quality of production and was therefore exempt from challenge under section 703(h) of Title VII, where, as here, plaintiffs failed to adequately plead that program was adopted with intent to discriminate. Moreover, plaintiffs’ contention that they received reduced retention awards based on lower production credits can be asserted as damage claim in previously-filed and pending lawsuit that had challenged defendant’s practice in steering plaintiffs away from lucrative assignments that had effect on their productivity.