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USDOJ Pursues Last-Minute Attempt to Kill "Adverse Impact" Discrimination Claims Against Federal Grant Recipients | DirectEmployers Association


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On Wednesday, January 6, 2021, the United States Department of Justice (“DOJ”) has submitted to the Office of Management and Budget (“OMB”) for review a
Final Rule amending DOJ’s regulations administering Title VI (Title 6) of the 1964 Civil Rights Act. The Final Rule would eliminate prosecution of “disparate impact” discrimination claims against recipients of “federal financial assistance” (otherwise colloquially known as “grants”).
This Final Rule will immediately arouse and antagonize civil rights groups nationwide since they are all emotionally tied to the adverse impact theory, regardless of its particular statutory application. Moreover, the federal government grant program is so large that many watchdogs of government contracting will decry reducing federal oversight of grant recipients. In FY2020, for example, the federal government delivered almost $750 Billion in grants (“fe ....

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