State v. Equal Emp't Opportunity Comm'n

933 F.3d 433
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 6, 2019
DocketNo. 18-10638
StatusPublished
Cited by82 cases

This text of 933 F.3d 433 (State v. Equal Emp't Opportunity Comm'n) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Equal Emp't Opportunity Comm'n, 933 F.3d 433 (5th Cir. 2019).

Opinion

JERRY E. SMITH, Circuit Judge:

Texas sued the Equal Employment Opportunity Commission ("EEOC") and the Attorney General ("Defendants"), challenging EEOC's guidance on employers' use of criminal records in hiring. Texas alleged that guidance constituted an unlawfully promulgated substantive rule and sought to enjoin its enforcement. The state also asked for a declaration per the Declaratory Judgment Act ("DJA") that it could lawfully exclude felons from state employment. The district court dismissed for want of jurisdiction, but a different panel of this court reversed. Texas v. EEOC (Texas I ), 827 F.3d 372 (5th Cir. 2016). That panel, however, withdrew its opinion and remanded so the district court could apply United States Army Corps of Engineers v. Hawkes Co. , --- U.S. ----, 136 S. Ct. 1807, 195 L.Ed.2d 77 (2016), in the first instance. Texas v. EEOC (Texas II ), 838 F.3d 511 (5th Cir. 2016) (per curiam).

On remand, considering cross-motions for summary judgment, the district court dismissed Texas's DJA claim but enjoined defendants from enforcing EEOC's guidance against Texas until EEOC complies with the notice-and-comment rulemaking requirements of the Administrative Procedure Act ("APA"), 5 U.S.C. § 553. We modify the injunction and affirm it as modified.

I.

A.

In April 2012, EEOC issued "Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions Under Title VII" ("the Guidance").1 Citing data suggesting that blanket bans on hiring individuals with criminal records disproportionately impact minorities, the Guidance declares,

*438With respect to criminal records, there is Title VII disparate impact liability where the evidence shows that a covered employer's criminal record screening policy or practice disproportionately screens out a Title VII-protected group and the employer does not demonstrate that the policy or practice is job related for the positions in question and consistent with business necessity.

Guidance at 9. The Guidance also describes how EEOC will assess whether considering criminal records in hiring decisions has a disparate impact on protected groups. Notably, the Guidance concludes that "[n]ational data ... supports a finding that criminal record exclusions have a disparate impact based on race and national origin [and] provides a basis for the Commission to further investigate such Title VII disparate impact charges." Id. at 10.

The Guidance details how an employer may show that its policy is job-related and consistent with business necessity and thus may defend against a charge that its criminal-record policy gives rise to disparate impact liability under Title VII. The Guidance provides that "[a]n employer's evidence of a racially balanced workforce will not be enough to disprove disparate impact." Id. Instead, an employer "needs to show that [its criminal-record hiring] policy operates to effectively link specific criminal conduct, and its dangers, with the risks inherent in the duties of a particular position." Id. at 14.

The Guidance presents "[t]wo circumstances in which [EEOC] believes employers will consistently meet the 'job related and consistent with business necessity' defense": (1) by establishing a validated, multi-factor screening system per the Uniform Guidelines on Employee Selection Procedures standards or (2) by "develop[ing] a targeted screen ... and then provid[ing] an opportunity for an individualized assessment for people excluded by the screen." Id. (emphasis added). Significantly, the Guidance condemns any "policy or practice requiring an automatic, across-the-board exclusion from all employment opportunities" because it "does not focus on the dangers of particular crimes and the risks in particular positions." Id. at 16.2

"All entities covered by Title VII are subject to [the Guidance's] analysis," id. at 27 n.2-including "state[ ] and local governments," id. at 3. The Guidance was "issued as a part of the Commission's efforts to eliminate unlawful discrimination in employment screening, for hiring or retention, by entities covered by Title VII, including private employers as well as federal, state , and local governments." Id. (emphasis added).3 And the Guidance stresses that it should be followed by "employers *439considering the use of criminal records in their selection and retention processes"; "individuals who suspect that they have been denied jobs or promotions, or have been discharged because of their criminal records"; and "EEOC staff who are investigating discrimination charges involving the use of criminal records in employment decisions." Id.4

Although the scope of the Guidance is purportedly broad, EEOC has limited rulemaking and enforcement power with respect to Title VII. It may issue only "procedural regulations" implementing Title VII and may not promulgate substantive rules. See 42 U.S.C. § 2000e-12(a) ; see also EEOC v. Arabian Am. Oil Co.

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Cite This Page — Counsel Stack

Bluebook (online)
933 F.3d 433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-equal-empt-opportunity-commn-ca5-2019.