Disparate Impact

News & Analysis as of

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

Weekly Law Resume - February 2014: Employment Law – Wrongful Termination – Retaliation – Jury Instruction

Romeo Mendoza v. Western Medical Center Santa Ana - Court Of Appeal, Fourth District (January 14, 2014) - In the Harris decision, the California Supreme Court held that CACI No. 2500 (the Federal Employment and...more

Update on disparate impact lawsuit against HUD

The settlement and Supreme Court’s dismissal of Mount Holly v. Mt. Holly Gardens Citizens in Action, Inc. has increased the potential significance of the lawsuit filed in June 2013 in federal district court in Washington,...more

"Consumer Financial Protection Bureau Focuses on Fair Lending"

Having enacted a number of mortgage-related rules on the eve of statutory deadlines, the Consumer Financial Protection Bureau (CFPB), which now has a confirmed director, has shifted its focus to fair lending enforcement,...more

U.S. House of Representatives Oversight and Investigations Subcommittee Examines Disparate Impact Theory in Fair Housing and...

On November 19, 2013, the Oversight and Investigations Subcommittee of the U.S. House of Representatives Committee on Financial Services conducted a hearing titled "A General Overview of Disparate Impact Theory." Under the...more

Mt. Holly Settled: Disparate Impact Questions Linger

The Consumer Financial Protection Bureau (CFPB) and other agencies that apply disparate impact tests under the Equal Credit Opportunity Act (ECOA) appear to have dodged another bullet. The background, recent events, and...more

FIO Focus - November 2013, Issue 43

On November 19, 2013, the House Financial Services Subcommittee on Oversight and Investigations held a hearing entitled "A General Overview of Disparate Impact Theory." The hearing covered the use of disparate impact...more

Texas Challenges EEOC's Regulation On The Use Of Criminal Background Checks In The Employment Application Process

On November 4, 2013, the State of Texas filed a lawsuit against the Equal Employment Opportunity Commission (EEOC) regarding the agency's April 2012 guidance on the use of criminal background checks in the employment...more

HUD Settlement Resolves Fair Housing Act Allegations

On November 5, HUD released a Conciliation Agreement with a lender alleged to have discriminated against African-American and Hispanic borrowers seeking mortgage loans. In an administrative complaint filed following a review...more

Special Alert: Settlement In Key Fair Housing Case Moves Forward, Supreme Court Unlikely To Hear Appeal

Last night, the Mount Holly, New Jersey Township Council voted to approve a settlement agreement that will resolve the underlying claims at issue in a closely watched Fair Housing Act (FHA) appeal pending before the U.S....more

Tentative Settlement Reached in Disparate Impact Theory Suit

A tentative settlement has been reached in the case against a New Jersey township brought by a group of neighborhood residents challenging the township’s redevelopment plans based on the disparate impact theory. The township...more

Final Settlement In SCOTUS Fair Housing Case Delayed

On November 6, the Philadelphia Inquirer reported that a final settlement to resolve the underlying claims at issue in Township of Mount Holly v. Mt. Holly Gardens Citizens in Action, Inc., No. 11-1507 — an appeal currently...more

Texas Files Suit to Strike Down EEOC Background Check Guidance

The Equal Employment Opportunity Commission (“EEOC”) usually forces employers who are subject to Title VII to play defense. The State of Texas, however, has upended that approach. On November 4, 2013, Texas filed a federal...more

Tentative Settlement Reached In SCOTUS Disparate Impact Case

On October 31, the Philadelphia Inquirer and national media outlets reported that a tentative agreement has been reached to resolve the underlying claims at issue in Township of Mount Holly, New Jersey, et al. v. Mt. Holly...more

Mount Holly settlement update

Last night, the Mount Holly town council met to discuss the tentative settlement in Township of Mount Holly v. Mt. Holly Gardens Citizens in Action, Inc. We understand that due to issues concerning the language of the...more

Tentative settlement reportedly reached in Mount Holly

It is looking like our prediction that Township of Mount Holly v. Mt. Holly Gardens Citizens in Action, Inc. would settle before the U.S. Supreme Court heard oral argument was accurate. Late yesterday, the Wall Street Journal...more

EEOC Strikes Out In Criminal Background And Credit Check Litigation

The EEOC has been aggressively pursuing litigation against private businesses for alleged violations of Title VII based upon the use of criminal background and credit checks in the hiring process. The theory pursued by the...more

Real-Life Political Drama Provides More Questions Than Answers: BB&K's Parissh Knox Examines the Issues Raised in the Palmdale...

Palmdale, a suburb nestled in the Mojave Desert north of Los Angeles, is among a growing number of cities, community college districts, school districts and other agencies in California that are under tremendous pressure to...more

Sixth Circuit Approves Fee Award Against the EEOC for Meritless Criminal Record Action

A divided Sixth Circuit panel affirmed the district court decision in EEOC v. Peoplemark, Inc., (Case No. 11-2582) assessing fees and costs against the Equal Employment Opportunity Commission (“EEOC”) totaling $751,942.48 for...more

Auto Notes, Fall 2013: Dealer Markup Practices - In a New Era of Federal Enforcement

In March 2013, the U.S. Consumer Finance Protection Bureau (“CFPB”) announced that it would closely scrutinize dealer reserve (“markup”) practices. The federal concern is that dealer markups may result in an illegal disparate...more

Labor Letter, October 2013: Strike Two – The EEOC's Failed Attempts To Limit Background Checks

On August 9, 2013, the EEOC suffered its second defeat of the year in litigation involving employer use of criminal and credit background checks for employment screening. A federal district court in Maryland held that the...more

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