In Ford Motor Co. v. Equal Employment Opportunity Commission (1981), the U.S. Supreme Court ruled in favor of the EEOC, upholding that an employer is liable for back pay to victims of discrimination from the date of occurrence until a lawful, nondiscriminatory employment practice is put into place by court order or otherwise. The case arose when Ford Motor Company was found guilty of racial and sexual discrimination against employees at its assembly plant in Metuchen, New Jersey between 1966-1970. The company argued it should not be held responsible for back pay after 1973 as they had ceased discriminatory practices then; however, no formal court order confirming this change was issued until 1979. The Supreme Court disagreed with Ford's argument stating that without a judicial decree or similar assurance ending unlawful conduct, employers could continue discriminating while avoiding liability simply by claiming they had stopped their illegal actions.

In the dissenting opinion for Ford Motor Co. v. Equal Employment Opportunity Commission, Justice Rehnquist disagreed with the majority's interpretation of Title VII of the Civil Rights Act and its application to hiring practices that may have a disparate impact on minority groups. He argued that Congress intended Title VII to prohibit intentional discrimination only, not neutral employment practices that unintentionally disadvantage certain racial or ethnic groups. According to him, it was inappropriate for courts to second-guess employers' business judgments about job qualifications unless there is clear evidence of discriminatory intent or purpose behind those decisions. Furthermore, he expressed concern over potential misuse of statistical data in proving discrimination claims without direct proof of bias or prejudice from employers.