In Albemarle Paper Co. v. Moody, the U.S Supreme Court ruled in 1974 that employers must prove that their employment tests are reasonably related to job performance if those tests have a discriminatory impact on minority groups. The case was brought by African American employees of the Albemarle Paper Company who alleged racial discrimination in promotions and wage increases due to biased testing and seniority systems used by the company. The court held that under Title VII of the Civil Rights Act of 1964, it is unlawful for an employer to use aptitude or other types of tests which disproportionately disqualify minorities unless they can demonstrate these exams are directly connected with job performance.

In the dissenting opinion for Albemarle Paper Co. v. Moody, Justice William H. Rehnquist argued that the majority's decision to award back pay was not supported by Title VII of the Civil Rights Act of 1964 or its legislative history. He contended that while Title VII does grant courts broad powers to enforce equal employment opportunities, it does not explicitly authorize them to award back pay in cases where discrimination is found. Furthermore, he pointed out that Congress had specifically considered and rejected a provision allowing for such awards during deliberations on the Act. Therefore, he believed this power should be left with administrative agencies like Equal Employment Opportunity Commission (EEOC), which are better equipped than courts to handle complex issues related to wage adjustments and job classifications.