In Rea v. Federated Investors, No. 10-1440 (3d Cir. Dec. 15, 2010), the U.S. Court of Appeals for the Third Circuit weighed in on a timely issue for private sector employers: whether Section 525 of the Bankruptcy Code prohibits a private employer from rejecting job applicants based on a bankruptcy filing. The Third Circuit held that the statute's reach does not extend to the hiring process, and it affirmed the district court's order dismissing the case on the pleadings. The court's decision is plainly favorable to private sector employers with operations in the Third Circuit, but employers still should be mindful of several related legal considerations. To learn more about the decision and its implication for employers, please continue reading Littler's ASAP, Third Circuit Clarifies that Bankruptcy Code Does Not Prohibit Employers from Considering Previous Bankruptcies in Hiring Decisions by Rod Fliegel and William Simmons. 

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