In the 1950s Duke Power's Dan River Steam Station in North Carolina had a policy restricting Black employees to its "Labor" department, where the highest-paying position paid less than the lowest-paying position in the four other departments. In 1955 the company added the requirement of a high school diploma for employment in any department other than Labor, and offered to pay two-thirds of the high-school training tuition for employees without a diploma. On July 2, 1965, the day the Civil Rights Act of 1964 took effect, Duke Power added two employment tests, which would allow employees without high-school diplomas to transfer to higher-paying departments. The Bennett Mechanical Comprehension Test was a test of mechanical aptitude, and the Wonderlic Cognitive Ability Test was an IQ test measuring general intelligence. Blacks were almost ten times less likely than whites to meet these new employment and transfer requirements. According to the 1960 Census, while 34% of white males in North Carolina had high-school diplomas, only 18% of Blacks did. The disparities of aptitude tests were far greater; with the cutoffs set at the median for high-school graduates, 58% of whites passed, compared to 6% of Blacks.
Judgment
The Supreme Court ruled that under Title VII of the Civil Rights Act of 1964, if such tests disparately impact ethnic minority groups, businesses must demonstrate that such tests are "reasonably related" to the job for which the test is required. Because Title VII was passed pursuant to Congress's power under the Commerce Clause of the Constitution, the disparate impact test later articulated by the Supreme Court in Washington v. Davis, 426 US 229 is inapplicable. As such, Title VII of the Civil Rights Act prohibits employment tests that are not a "reasonable measure of job performance," regardless of the absence of actual intent to discriminate. Since the aptitude tests involved, and the high school diploma requirement, were broad-based and not directly related to the jobs performed, Duke Power's employee transfer procedure was found by the Court to be in violation of the Act. Chief Justice Burger wrote the majority opinion.
Significance
Griggs v. Duke Power Co. also held that the employer had the burden of producing and proving the business necessity of a test. However, in Wards Cove Packing Co. v. Atonio, the Court reduced the employer's burden to producing only evidence of business justification. In 1991, the Civil Rights Act was amended to overturn that portion of the Wards Cove decision. David Frum asserts that before Griggs, employers did not have to separate intentional wrongs from unintentional wrongs if they treated all applicants equally by appearances. Justice Ginsburg's dissent in Ricci v. DeStefano suggests that the Griggs conclusion has been effectively overturned by the Ricci decision. Although private employers with 15 or more employees are subject to Title VII of the Civil Rights Act, it was held in Washington v. Davis that the disparate impact doctrine does not apply to the equal protection requirement of the Fifth and Fourteenth Amendments. Thus, lawsuits against public employers may be barred by sovereign immunity.