In the context of employment law, what is considered an adverse action?

An adverse action in the context of employment law generally refers to actions that negatively affect an employee's terms, conditions, or privileges of employment. Demotion or termination falls squarely within this definition, as both actions directly diminish an employee's standing in the workplace, impacting their responsibilities, status, or income.

When an employee is demoted, they may face a reduction in pay, prestige, and job security, which can seriously affect their morale and future opportunities. Likewise, termination removes the employee from their job entirely, severing their relationship with the employer. Both of these scenarios clearly represent significant negative changes in employment status, thereby categorizing them as adverse actions.

In contrast, the other options provided do not constitute adverse actions. A promotion or salary increase typically represents a positive change in an employee's status, while a job offer indicates the potential for new employment, both of which are favorable outcomes.