Which of the following best describes the action taken when an employee is reassigned to a position that diminishes their pay and role?

The action taken when an employee is reassigned to a position that diminishes their pay and role is best described as a retaliatory demotion. This term refers to a situation where an employee is demoted as a direct response to their protected activities, such as filing a complaint, reporting harassment, or participating in union activities. Such demotions are typically viewed as punitive actions taken by the employer in retaliation for the employee exercising their rights.

Retaliatory demotion is significant because it raises legal concerns regarding workplace discrimination and can violate labor laws protecting employees from retaliation for asserting their rights. Employers should ensure that employee reassignments are based on legitimate business needs and not as a form of punishment for engaging in legally protected activities.

On the other hand, terms like promotional demotion, workplace bullying, and constructive discharge represent different concepts. Promotional demotion typically refers to a decrease in rank or status that occurs despite previous upward movement in the organization. Workplace bullying involves hostile or aggressive behavior that creates a toxic work environment but does not specifically relate to a change in position or pay. Constructive discharge refers to a situation where an employee resigns due to their employer creating a work environment that is intolerable, rather than a direct reassignment to a lower role.