The Department of Justice’s Office of Legal Counsel (OLC) has issued an opinion letter to the Equal Employment Commission (EEOC) concluding that the EEOC’s interpretations of Title VII disparate impact liability are unconstitutional as they “contemplate liability based on disparate effects alone, without regard to an employer’s likely intent.”
The opinion frames disparate impact as an evidentiary tool “to smoke out intentional discrimination,” and offers three limiting principles: (1) employers need only show that a challenged practice reasonably serves a valid business purpose; (2) background checks, aptitude tests and other workplace requirements are presumptively job-related; and (3) plaintiffs must demonstrate a challenged practice caused disparate impact and provide evidence of an equally effective alternative.
It also concludes that EEOC validation study regulations, affirmative action guidance, and portions of the Uniform Guidelines are inconsistent with Title VII and the Constitution.