Court of Appeal rejects litigation risk as sole justification for facially discriminatory UC student hiring policy: Munoz v. The Regents of the University of California

In Munoz v. The Regents of the University of California (2025) 113 Cal.App.5th 466, the Court of Appeal (Fourth Appellate District, Division One) held that a University of California policy prohibiting the employment of students without federal work authorization was facially discriminatory under FEHA and that Defendant’s risk of litigation alone was not sufficient justification for the policy.

Defendant had a longstanding policy, based on its interpretation of the Immigration Reform and Control Act (IRCA, 8 U.S.C. § 1324a), of not hiring undocumented students for on-campus work. After Defendant suspended a working group without amending its policy, Petitioners filed for a writ of mandate, arguing the policy misinterpreted IRCA and violated FEHA. The trial court denied the petition. The California Supreme Court granted review and transferred the matter to the Court of Appeal to issue an order to show cause.

The Court of Appeal issued a writ of mandate directing Defendant to “not rely on litigation risk alone as the justification for its facially discriminatory policy.” It held that Defendant could reasonably assess its litigation risk and did not need to prove its IRCA interpretation was correct, as long as the interpretation was not “arbitrary” or “capricious.” However, the Court of Appeal rejected Defendant’s argument that the policy was based on the unprotected classification of whether a student had federal work authorization rather than immigration status, holding the two are not materially distinct. Under Cal. Code Regs., Tit. 2, § 11028(f)(3), the policy was therefore unlawful unless Defendant could show by clear and convincing evidence it was required by federal immigration law. Finding Defendant made no such attempt, the Court of Appeal analyzed whether the policy could be justified solely by the University’s risk assessment. It rejected Defendant’s Bona Fide Occupational Qualification defense (§ 11010(a)), finding Defendant failed to show the policy was “reasonably necessary to its normal business operations.” However, the Court of Appeal also found that Petitioners did not establish a FEHA violation as a matter of law, declining to interpret § 1324a itself.

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