On the heels of the end of the Supreme Court’s 2022-2023 term, we have seen several consequential decisions handed down which employers will be interested in reviewing.

Student Loan Debt

One of the long promised initiatives of the Biden Administration has been student loan forgiveness. In Biden v Nebraska, the debt relief plan that would have essentially erased up to $20,000 in loan debt per person (based on income) was struck down as an ‘overreach’ of the President’s executive powers. Chief Justice Roberts cited Congress’ spending powers as the only branch with the authority to act in this economic matter.

Affirmative Action

The Supreme Court struck down affirmative action programs at the University of North Carolina and Harvard University, signaling the end of systematic consideration of race in college admissions.

In a 6-3 vote in Students for Fair Admissions Inc. v. University of North Carolina and a 6-2 vote in Students for Fair Admission Inc. v. President & Fellows of Harvard College, the Supreme Court ruled that both universities’ affirmative action programs violate the Equal Protection Clause of the U.S. Constitution.

These decisions effectively overturn the Supreme Court’s 2003 decision of Grutter v. Bollinger, which allows universities to consider race, among other factors, in university admissions because diversity in education is a legitimate aim.

While Chief Justice Roberts did not explicitly state that the former precedents were overruled in the majority opinion, Justice Clarence Thomas wrote in a concurring opinion that Grutter was “for all intents and purposes, overruled.”

While the Supreme Court’s ruling in these cases will likely not directly affect employers, it could impact workplace diversity, equity, inclusion and belonging initiatives, including the ways organizations promote and implement these initiatives in the future as well as employer affirmative action programs.

Religious Accommodations

In Groff v. DeJoy, the Supreme Court unanimously ruled in favor of a U.S. Postal Service mail carrier who sought religious accommodation after receiving disciplinary action for refusing to work on a Sunday.

The Supreme Court’s decision signals a lesser burden for employees seeking religious accommodations, while in turn raising the standard for employers to show the burden workers’ religious accommodation requests would actually have on their businesses.

In order to deny a religious accommodation request under this new standard, an employer must demonstrate that the burden of granting the accommodation would create “substantial increased costs in relation to the conduct of its particular business.” 

Employer Takeaways

While there is no present action required on account of any of the above summarized Court decisions, the opinions signal the direction we can expect in upcoming challenges the High Court will review. Employers should review their policies and procedures with an eye toward consistent enforcement and appropriate accommodations as needed.