Texas v. EEOC, No. 18-10638 (5th Cir. 2019)Annotate this Case
Texas filed suit against the EEOC and the Attorney General, challenging the EEOC's guidance on employers' use of criminal records in hiring. On remand, the district court dismissed Texas's claim under the Declaratory Judgment Act (DJA), but enjoined defendants from enforcing EEOC's guidance against Texas until EEOC complied with the notice-and-comment rulemaking requirements of the Administrative Procedure Act (APA).
The Fifth Circuit held that the Guidance was a reviewable final agency action that the court had jurisdiction to review. Furthermore, Texas had standing to sue EEOC and the Attorney General to challenge the legality of the Guidance. On the merits, the court held that the Guidance was a substantive rule subject to the APA's notice-and-comment requirement and that EEOC overstepped its statutory authority in issuing the Guidance. Because the Guidance is a substantive rule, and the text of Title VII and precedent confirmed that EEOC lacked authority to promulgate substantive rules implementing Title VII, the court modified the injunction by striking the clause "until the EEOC has complied with the notice and comment requirements under the APA for promulgating an enforceable substantive rule." The court also modified the injunction to clarify that EEOC and the Attorney General may not treat the Guidance as binding in any respect. Therefore, the court affirmed the injunction as modified and declined to consider the DJA claim.