Ch. 7 Rulings Won't Fend Off Disparate Impact Claims

Law360, New York (June 3, 2011, 6:51 PM EDT) -- Three circuit courts have ruled in the past six months that the Bankruptcy Code does not bar private employers from refusing to hire a job candidate because they've filed for bankruptcy, but employers should still be cautious about how they treat such applicants to minimize potential exposure to disparate impact claims, attorneys say.

On May 17, the Eleventh Circuit affirmed a trial court loss for Eric Myers, who sued Toojay's Management Corp. claiming that the company ran afoul of the law — specifically Section 525(b) of...
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