Disparate Impact

News & Analysis as of

California Employment Law Notes - July 2014

"Unauthorized Alien" Who Provided False SSN Can Proceed With Disability Discrimination Lawsuit - Salas v. Sierra Chem. Co., 2014 WL 2883878 (Cal. S. Ct. 2014) Vicente Salas worked on Sierra Chemical's production...more

U.S. Census Bureau Down for the Count after Certification Ruling in Criminal Background Check Case

Last Tuesday, a Magistrate Judge in the United States District Court for the Southern District of New York granted partial class certification in a case where plaintiffs allege that the United States Census Bureau used arrest...more

50 For 50: Five Decades Of The Most Important Employment Discrimination Decisions - Number 49: EEOC Takes On Background Checks

Throughout this series, we have touched on facially neutral policies which, although not motivated by unlawful discrimination, have a discriminatory effect on certain protected classes. For over 40 years, the courts have...more

Supreme Court Deals Affirmative Action Another Blow, But Impact on Colleges and Universities Likely Limited

The U.S. Supreme Court continued its decade-long interest in the role of affirmative action in the higher education admissions process, and decided to uphold a state law banning the practice. In Schuette v. Coalition to...more

EEOC Background Check Guidance Under Fire - House Subcommittee on Workforce Protections Hears Testimony on Controversial Rules

On June 10, the House Subcommittee on Workforce Protections heard testimony regarding the Equal Employment Opportunity Commission’s (EEOC) controversial background check guidance. Comments focused on the difficulties faced by...more

50 For 50: Five Decades Of The Most Important Employment Discrimination Decisions - Number 39: Statistics In Discrimination Cases

Statistics have been a component of discrimination litigation since Title VII enforcement actions began to catch on. Normally, statistics arise in a disparate impact discrimination claim – where a facially neutral employment...more

Is Any Use of Medical Info Disparate Treatment?

If an employer administers a post-offer medical exam in accordance with the ADA and keeps the acquired medical information confidential in accordance with the ADA, may the employer then use the information without violating...more

Another insurance industry trade association group challenges the HUD disparate impact rule

We have been following the lawsuit in federal district court in D.C. in which two insurance industry trade associations have challenged the HUD disparate impact rule. The complaint in the D.C. action, which was commenced in...more

House 2015 DOJ appropriations bill prohibits DOJ use of disparate impact in FHA enforcement actions

The FY 2015 Commerce, Justice, Science Appropriations Act (H.R. 4660) passed by the House of Representatives includes an amendment (H. Amdt. 768) that prohibits the U.S. Department of Justice from using any of the funding...more

Another Supreme Court disparate impact case?

The U.S. Supreme Court could have its third opportunity since 2012 to provide clarity with respect to disparate impact claims under the Fair Housing Act and (by analogy) the Equal Credit Opportunity Act. After losing on...more

A New Defense Against Municipal Disparate Impact Claims

Banks and non-bank lenders face a variety of fair lending disparate impact claims, which allege unintentional and unfavorable disparate impacts of otherwise neutral policies or practices on minority borrowers. Regulators,...more

50 For 50: Five Decades Of The Most Important Discrimination Law Developments - Number 24: The Supreme Court Balances TheTension...

Employment tests and other selection procedures have long been part of hiring and promotional processes for many employers. Designed and used properly, employment tests can be very effective in assisting employers to...more

Employment Discrimination Plaintiff Cannot Change Legal Theories at Trial

In Rosenfeld v. Abraham Joshua Heschel Day School, Inc., the Second Appellate District held that a plaintiff whose pleadings alleged intentional employment discrimination could not assert a disparate impact theory for the...more

Inclusive Communities Project case summary

On March 24, 2014, the Fifth Circuit was the first Circuit to directly adopt HUD’s new disparate impact rule. Inclusive Communities Project v. Texas Dep’t of Hous., 2014 WL 1257127 (5th Cir. Mar. 24, 2014). Now, a challenge...more

Disparate Impact to Supreme Court Again?

Yet another Fair Housing Act disparate impact case may find its way to the U.S. Supreme Court. After losing on appeal at the Fifth Circuit in March, the Texas Department of Housing and Community Affairs (Texas DHCA) recently...more

Is Use of False SSN Dishonest?

Can you refuse to hire an authorized worker – even a U.S. citizen – because once upon a time he used a false Social Security number? In Guerrero v. California Department of Corrections & Rehabilitation, No. C 13-05671 WHA...more

Ninth Circuit Reverses Denial Of Class Certification In Disparate Impact Case

On April 24, the U.S. Court of Appeals for the Ninth Circuit reversed a district court’s denial of class certification in a disparate impact age discrimination case, holding that the court erred in considering merits issues...more

Supreme Court Rules On Affirmative Action

Yesterday’s Supreme Court decision in Schuette v. Coalition to Defend Affirmative Action is attracting a fair amount of attention in the news media. From an employment law perspective, the case likely will have little impact....more

High Court Decision In Michigan Affirmative Action Case Leaves Requirements For The Consideration Of Race Untouched

The U.S. Supreme Court held yesterday that a voter-approved ban on the use of race-based preferences for public university admissions does not violate the U.S. Constitution. The decision focused narrowly on whether the U.S....more

Supreme Court Ruling Exposes Continuing Division on Use of Race in Higher Education Admissions

Yesterday's ruling in Schuette v. Coalition to Defend Affirmative Action shows that the justices on the U.S. Supreme Court remain fundamentally divided about the future of race-conscious admission policies in higher...more

Sixth Circuit Delivers Knockout to EEOC in Another Background Check Case

The EEOC suffered a major setback on April 9th when the Sixth Circuit Court of Appeals affirmed summary judgment in the highly watched background check case of EEOC v. Kaplan Higher Education Corporation, et al. The Sixth...more

Disparate Impact In Fair Lending: A Theory Without A Basis And The Law Of Unintended Consequences

The disparate impact theory of discrimination allows the government or a private plaintiff to establish discrimination based solely on the outcome of a neutral policy, without having to prove any actual intent to...more

Did You Know...New Informal Guidance From EEOC & FTC Re Background Checks

As we recently reported at our annual employment law update, additional restrictions are being placed on the use of background checks in light of the potential for disparate impact and invasion of the right to privacy....more

Ninth Circuit Denies En Banc Review in Newport Beach Case

The Ninth Circuit has denied the sua sponte call for en banc review in Pacific Shore Properties, LLC v. City of Newport Beach, No. 11-55460, a case that we have written about previously. Judge O’Scannlain, joined by Judges...more

Disparate Impact Remains Fair Lending Risk To Banks

Lenders seeking judicial relief from the Consumer Financial Protection Bureau’s heightened enforcement of the Equal Credit Opportunity Act were left disappointed by the settlement of Mt. Holly v. Mt. Holly Gardens Citizens in...more

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