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In June, the U.S. Justice Department’s Office of Legal Counsel (OLC) issued an Opinion calling into question the concept of disparate impact liability under federal law. Under Title VII of the Civil Rights Act of 1964 as amended in 1991, disparate impact liability is triggered if a neutral employment practice disproportionately harms a protected class. The Opinion concluded that certain guidelines maintained by the U.S. Equal Employment Opportunity Commission (EEOC) are unconstitutional because they are grounded in disparate impacts alone without sufficient regard to employer intent.
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