In Moody et al. v. Albemarle Paper Co. et al., the U.S Supreme Court addressed the issue of employment discrimination based on race and sex, specifically in relation to testing procedures used for job promotions within a company. The plaintiffs argued that these tests were discriminatory as they disproportionately affected African American employees by setting unnecessary or irrelevant standards for promotion, thereby violating Title VII of the Civil Rights Act of 1964 which prohibits employment discrimination based on race, color, religion, sex and national origin. The court ruled in favor of the plaintiffs stating that employers must demonstrate that their tests are "job related" meaning they accurately measure an individual's ability to perform a specific job role effectively rather than being arbitrary or capricious barriers to advancement.

In the dissenting opinion for Moody et al. v. Albemarle Paper Co. et al., Justice Powell argued that while he agreed with the majority's decision to uphold Title VII of the Civil Rights Act, he disagreed with their interpretation and application of it in this case. He believed that they had overstepped by imposing a rigid formula for determining whether an employment test was discriminatory, rather than allowing lower courts to use their discretion based on individual circumstances. Furthermore, he criticized the majority's decision to remand back to district court for reconsideration of backpay awards as unnecessary and burdensome, arguing that there was already sufficient evidence presented at trial demonstrating discrimination warranting such compensation.