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Latest Cases & Developments
Date:
IRS FAQ on New Deduction for Qualified Overtime Compensation under OBBB (Jan. 23, 2026)
The Department of the Treasury and the Internal Revenue Service (IRS) issued a Frequently Asked Questions (FAQ) related to the new deduction for qualified overtime compensation under the One, Big, Beautiful Bill Act. The FAQ provides clarification on eligibility requirements for deductions as well as supplemental information on eligibility and other rules.
Topics:
Compensation & Benefits | Taxes & FinancesDate:
EEOC Rescinds Harassment Enforcement Guidance (Jan. 23, 2026)
The Equal Employment Opportunity Commission (EEOC) voted 2-1 to rescind its “Enforcement Guidance on Harassment in the Workplace,” which was updated in 2024. In rescinding the guidance, the EEOC Chair cited concerns that the section on gender identity and sexual orientation, which cited Bostock, overstepped the agency’s authority. Additionally, the Chair explained that Executive Order 14168 “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government,” expressly directed the agency to rescind the guidance.
Topics:
Discrimination, Accommodation, & Diversity | Gender Identity & Sexual Orientation DiscriminationDate:
American Association of University Professors, et al., v. Marco Rubio, et al., (D. Mass. Jan. 22, 2026)
Annotated Judgment Vacating Defendants’ Enforcement Policy. Following a September ruling that the government’s enforcement policy implementing Executive Orders 14161 and 14188, violated the First Amendment and the Administrative Procedure Act (APA), the court issued an annotated judgment, declaring the enforcement policy “OF NO EFFECT, VOID, ILLEGAL, SET ASIDE, AND VACATED.” Further, pursuant to its equitable powers, the court imposed a “remedial sanction” that allows affected noncitizen members of the plaintiffs’ organizations to challenge adverse immigration actions, shifting the burden to the government to prove by clear and convincing evidence that such actions were not retaliatory or were otherwise lawful, while automatically staying removal during litigation.
Topics:
Constitutional Issues | Discrimination, Accommodation, & Diversity | First Amendment & Free Speech | Race and National Origin Discrimination | Religious Discrimination & AccommodationDate:
Faculty, Alumni, & Students Opposed to Racial Preferences v. Northwestern University, et al., (N.D. Ill. Jan. 22, 2026)
Opinion Granting Defendants’ Motion to Dismiss. Plaintiff, a non-profit membership organization formed to “restor[e] meritocracy in academia and fight[] race and sex preferences that subordinate academic merit to so-called diversity considerations,” sued Northwestern law school, Northwestern Law Review, and several law school administrators and faculty under Title VI, Title IX, Title VII, and 42 U.S.C. § 1981, alleging that they discriminated against heterosexual, cisgender, white men. The court dismissed the majority of plaintiff’s claims for lack of standing, finding that plaintiff (1) did not have any members who were eligible to apply as candidates for entry-level positions, (2) failed to identify any faculty member that was affected by discriminatory promotions, retention, discipline, or compensation, and (3) did not have any members applying to the law review and plaintiff’s theory that faculty members would be harmed indirectly through biased student editors was too speculative. Although plaintiff had standing to bring claims pertaining to the lateral faculty hiring process, the court held those claims failed on the merits. While the court agreed that plaintiff’s members could face a “competitive disadvantage,” it rejected plaintiff’s argument that this disadvantage constituted an adverse employment action. All claims were dismissed without prejudice.
Topics:
Discrimination, Accommodation, & Diversity | Diversity in EmploymentDate:
Davis v. Univ. of Toledo (6th Cir. Jan. 22, 2026)
Opinion Affirming Summary Judgment for Defendant. Plaintiff, the former Chief Human Resources Officer for the University of Toledo, sued the university under Title VII for race discrimination and retaliation after she was terminated based on poor performance and was subsequently replaced by two white administrators. The district court granted the university’s motion for summary judgment, finding (1) plaintiff’s race discrimination claim failed because she was unable to demonstrate pretext and (2) her retaliation claim failed because she had not exhausted her administrative remedies with the Ohio Civil Rights Commission. The Sixth Circuit affirmed, holding that plaintiff failed to show the university’s stated reason for termination was pretextual, given the record of plaintiff’s significant and sustained performance deficiencies, compliance failures, mishandling of a collective bargaining agreement, hiring delays, and high turnover among Human Resources leadership.
Topics:
Discrimination, Accommodation, & Diversity | Race and National Origin DiscriminationDate:
American Federation of Teachers, et al., v. U.S. Department of Education, et al. (4th Cir. Jan. 21, 2026)
The Department of Education dropped its appeal of an August 2025 federal court ruling that blocked the Department’s February 14, 2025 Dear Colleague Letter and a related requirement that school districts certify they do not engage in “illegal DEI” practices. With this withdrawal, the district court’s decision will stand.
Topics:
Admissions | Constitutional Issues | Discrimination, Accommodation, & Diversity | Diversity in Employment | Due Process | Financial Aid, Scholarships, & Student Loans | First Amendment & Free Speech | Race and National Origin Discrimination | StudentsDate:
ACE and 22 Other Higher Education Associations File Amicus Brief Supporting Injunction in Favor of Harvard University (Jan. 20, 2026)
The American Council on Education (ACE), along with 22 other higher education associations, filed an amicus brief with the First Circuit, urging it to affirm a preliminary injunction issued in June 2025 blocking enforcement of the presidential proclamation “Enhancing National Security by Addressing Risks at Harvard University,” which sought to bar international students from attending the university. The brief argues that the proclamation reflects an attempt to leverage immigration policy to punish the institution for perceived viewpoints and in doing so, would chill speech and academic decision-making across higher education. It also highlights the “targeted” and “punitive” nature of the proclamation, which permitted international students to enter the U.S. to study at any institution, other than Harvard. A summary of the arguments made in the brief may be found here.
Topics:
Immigration | International StudentsDate:
University of Pennsylvania Response in Opposition to EEOC Subpoena Enforcement Action (Jan. 20, 2026)
In November, the Equal Employment Opportunity Commission (EEOC) sued the University of Pennsylvania to enforce a subpoena in an ongoing workplace harassment investigation which seeks “lists of employees that reveal their Jewish faith or ancestry, associations with Jewish organizations, affiliation with Jewish studies, participation in programming for the Jewish community and/or de-anonymized responses to surveys on antisemitism, alongside their personal home addresses, phone numbers, and emails.” The university’s motion asks the court to deny the EEOC’s request noting that (1) the request does not satisfy the criteria for judicial enforcement and is unreasonably burdensome; (2) the privacy interests of the university’s employees outweigh the EEOC’s need for access; and (3) the request demands information that is not within the university’s possession, custody, or control.
Topics:
Discrimination, Accommodation, & Diversity | External Investigations | Investigations | Race and National Origin DiscriminationDate:
Niblock v. University of Kentucky (6th Cir. Jan. 20, 2026)
Opinion Affirming Judgment in Favor of the Defendant. Plaintiffs, former and current female students at the University of Kentucky, filed a putative class action against the university alleging Title IX and Equal Protection violations based on a disproportionate lack of women’s varsity sports opportunities. In considering the three safe harbors of complying with Title IX, the district court agreed with plaintiffs that the university did not provide substantially proportionate athletic sports for women or expand participation opportunities for women, but nevertheless the university’s efforts in “effectively accommodating” the interests and abilities of its students satisfied the third prong. On appeal, the Sixth Circuit affirmed, holding and noted that plaintiffs failed to prove sufficient interest and ability among female students to field viable Division I varsity teams in any of their proposed sports (lacrosse, field hockey, and equestrian). The court further reasoned that plaintiffs’ self-reported survey responses, standing alone, did not establish varsity-level ability, and plaintiffs’ claims were further hindered by testimony from club team members and coaches who expressed that existing club teams lacked a sufficient numbers of athletes to compete at the varsity level.
Topics:
Athletics & Sports | Gender Equity in Athletics
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