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Supreme Court Eliminates Higher Burden for Majority-Group Plaintiffs in Title VII Claims

Client Alert

On June 5, 2025, the U.S. Supreme Court in Ames v. Ohio Department of Youth Services unanimously struck down the “background circumstances rule,” holding that Title VII claims must follow the same evidentiary standard for both majority and minority-group plaintiffs.

In sum, Title VII prohibits employers from discriminating against employees on the basis of race, color, sex, national origin, or other protected classes. Before the U.S. Supreme Court’s June 5th decision, the background circumstances rule imposed a higher evidentiary burden on plaintiffs from historically advantaged majority groups, requiring them to present additional evidence of background circumstances to support claims of employment discrimination, unlike minority-group plaintiffs who were not subject to this heightened standard.

Historically, courts have applied a three-step test for Title VII discrimination claims, known as the McDonnell Douglas framework. The first step requires a plaintiff to present evidence to support an inference of unlawful discrimination, which is generally not a high bar to meet. However, under the previous background circumstances rule, majority-group plaintiffs were required to provide additional evidence to support their allegation that an employer discriminated against the majority.

Specifically, the Ames case involved a heterosexual woman who brought a Title VII reverse discrimination claim against her employer alleging she was denied a promotion in favor of a lesbian woman and was demoted in favor of a gay man. The Sixth Circuit Court of Appeals, applying the background circumstances rule, held that the woman must meet a higher evidentiary burden as a member of the majority-group (i.e., heterosexuals). The U.S. Supreme Court vacated and remanded the Sixth Circuit’s holding, reasoning that the background circumstances rule “cannot be squared with the text of Title VII.” The U.S. Supreme Court reasoned that the disparate treatment provision of Title VII makes it unlawful for an employer to discriminate against any individual on the basis of protected classes. As such, the U.S. Supreme Court found that the text of Title VII does not draw “distinctions between majority-group plaintiffs and minority-group plaintiffs,” therefore requiring identical standards of proof.

As always, employers should continue to focus on equal employment for all individuals regardless of characteristics such as their race, color, sex, national origin, or other protected classes. Further, employers should consider undertaking legal review of their equal employment opportunity and anti-discrimination policies to reflect an equal treatment standard and ensure compliance with Title VII and similar state laws.

Should you have questions of the recent decision, or the content of this client alert, please contact Partners and Co-Chairs of BMD’s Labor & Employment Group, Adam Fuller or Bryan Meek at adfuller@bmdllc.com or bmeek@bmdllc.com.  


Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

Ohio House Bill 58 proposes significant changes to recovery housing oversight, granting ADAMH Boards authority to inspect and investigate recovery residences. The bill also introduces a Certificate of Need (CON) program, requiring state approval for major facility changes. OMHAS will assess applications based on cost, quality, accessibility, and financial feasibility. The bill also establishes a recovery housing residence fund to support inspections. For more information, contact BMD attorneys Daphne Kackloudis or Jordan Burdick.

January 2025 Notice of Proposed Rulemaking Brings Notable Changes to HIPAA Security Rule

In January 2025, the U.S. Department of Health and Human Services proposed amendments to the HIPAA Security Rule, aiming to enhance cybersecurity for covered entities (CEs) and business associates (BAs). Key changes include mandatory compliance audits, workforce training, vulnerability scans, and risk assessments. Comments on the proposed rule are due by March 7, 2025.

Corporate Transparency Act Effective Again

The federal judiciary has issued multiple rulings on the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. Previously, enforcement was halted nationwide due to litigation in Smith v. U.S. Department of the Treasury. However, on February 18th, the court lifted the stay, reinstating the CTA’s reporting requirements. Non-exempt entities now have until March 21, 2025, to comply. Businesses should act promptly to avoid civil penalties of $591 per day and potential criminal liability.

Status Update: Physician Noncompete Agreements in Ohio

Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.

Immigration Orders and Their Economic Impact on Small Business: Insights from Attorney and Former Immigration Judge Rob Ratliff

President Trump's recent executive orders, targeting immigration policies, could significantly impact small businesses in Ohio, particularly those owned by undocumented immigrants. With stricter visa vetting, halted refugee admissions, and potential deportations, these businesses face uncertainty, workforce disruption, and closures. Ohio's immigrant-owned businesses, especially in food services and transportation, contribute billions to the state economy, and any disruption could result in economic ripple effects.