A federal appeals court ruled on August 6 the Equal Employment Opportunity Commission’s (EEOC) 2012 guidance document cautioned employers not to apply blanket bans against hiring those with criminal records could not be enforced against the state of Texas, handing the agency a stinging loss. The sweeping decision from the Fifth Circuit Court of Appeals calls into question not only the future of the guidance as applied to other employers across the country, but also the EEOC’s power to issue such guidance in the first place. Here are three things all employers should know about the ruling.

Court Rejects Application Of Guidance Against Texas

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