INDUSTRY NEWS

Texas appeal challenging EEOC's background check guidance tossed from court

The state's contention that the guidance preempted Texas' "no-felon" hiring policy was found to lack subject matter jurisdiction since the guidance is not a final agency action.

After the suit was initially dismissed in September 2014, the Lone Star State filed an appeal in November seeking to have the guidance declared invalid under the Administrative Procedure Act, adding that the guidance imposed “significant hardships on the state”.

Countering Texas’ argument, the EEOC claimed that its guidance is simply a resource provided to illustrate how federal anti-discrimination laws could be invoked should employers utilize criminal background checks to assist in making employment decisions. Therefore, the EEOC contended, its guidance is not a final agency action as it does not provide a culmination of a decision making process, has no bearing on an employer’s rights or obligations and because no legal repercussions stem from it.

The Fifth Circuit Court conclusively ruled in favor of the EEOC on Jan. 8, rejecting the state’s appeal claiming that “because the Guidance has no legal consequences, and Texas has not shown, nor can it show, any actual or imminent injury or traceable to the Guidance, Texas will not suffer any hardship from not obtaining review at this time.”

You can read more about the initial suit and the State of Texas’ appeal in our previous News to Note articles found here and here.

Source: Law360.com, 1/9/2015

Posted: February 2, 2015