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Jilted Job Applicant Loses Refusal-to-Hire Claim Based on Bankruptcy Filing

This report relates to 1 case(s)

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    Myers v. TooJay's Management Corp., 640 F.3d 1278 (11th Cir. 2011) (0 other reports)

Author: Michael T. Borruso

In Myers v. TooJay's Management Corp., +640 F.3d 1278 (11th Cir. 2011), the 11th Circuit Court of Appeals addressed whether a private employer could revoke a job offer after learning of an applicant's bankruptcy.The Bankruptcy Code protects individuals who are or have been in bankruptcy from certain actions by employers. +11 USCS § 525. Although the Bankruptcy Code bans government employers from refusing to hire individuals involved in a bankruptcy, no such prohibition applies to private sector employers.

Subsection (a) of the Code says government employers may not "deny employment to, terminate the employment of, or discriminate with respect to employment against" such individuals. Subsection (b) applies to private employers, but omits the phrase "deny employment to" from the list of prohibited actions.

In this case, the appeals court ruled that the employer was within its rights to rescind an employment offer based on the job applicant's credit history.