In 2023 the Department of Labor, citing Section 3 as its authority, proposed a new regulation that
Question:
In 2023 the Department of Labor, citing Section 3 as its authority, proposed a new regulation that provided for a comprehensive federal scheme requiring major industry sectors to develop standardized employment forms and a system for blind ranking of applicants based on specific educational and experiential criteria. The regulation preempts any state laws in the area, requires extensive reporting of hiring data, and includes a civil penalty scheme for any employer violating the regulation. The Department of Labor made it clear that it interpreted the phrase "outlining the elements necessary for fundamental fairness in hiring procedures" in Section 3 of the statute as including issuing mandatory requirements and levying penalties like the ones in the proposed regulation.
Commenters noted that federal payments to contractors in the major industry sectors affected account for some $300 billion in annual spending, and that the mandatory processes for developing forms and hiring would cost government contractors an additional $500 million per year. Smaller contractors provided comments stating they would be unable to remain in business with the new requirements. Commenters also pointed out well-developed state schemes dealing with hiring procedures would be disrupted, and that requiring blind hiring processes is an extreme and impractical intrusion into traditional areas of private enterprise.
However, other commenters noted that factors such as surnames, national origin and educational institutions attended have been shown to have unwarranted detrimental impacts in hiring. This intentional or unintentional unfairness is a drag on the national economy and has other harmful impacts, and could be addressed through a blind hiring process. Statistical evidence was also submitted showing that some state regulations allow discriminatory and unfair practices. Assume that the regulation survives a non-delegation doctrine challenge.
Analyze whether the Department of Labor's application of Section 3 of the Fairness in Hiring Act violates the major questions doctrine as articulated by the U.S. Supreme Court.
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts