Federal judges have struck down an FCC rule requiring broadcasters to report employee demographics, ruling the agency overstepped its authority by mandating workforce diversity data collection without Congressional approval.
At a Glance
- The Fifth Circuit Court of Appeals blocked the FCC from reinstating annual employment data collection from broadcasters
- The court ruled the FCC exceeded its legal authority with the Form 395-B requirement, which would have gathered data on race, ethnicity, and gender
- Religious groups had argued the rule violated First and Fifth Amendment rights, particularly due to a “non-binary” gender option
- FCC Chair Brendan Carr supported the court’s findings, calling the 2024 decision “an unlawful effort”
- The ruling maintains a status quo that has existed since 2001, when the FCC paused similar data collections
Court Finds FCC Exceeded Its Authority
The U.S. Court of Appeals for the Fifth Circuit in New Orleans has invalidated a Federal Communications Commission rule that would have required broadcasters to submit detailed workforce diversity reports. In the May 19 decision, the court determined that the FCC lacked the statutory authority to collect demographic information about broadcast employees. The FCC had planned to mandate that broadcasters report data on race, ethnicity, and gender of their employees through Form 395-B, with collection set to begin in 2024.
“While its authority to act in the public interest is broad, the FCC cannot invoke public interest to expand the scope of its authority to act in ways Congress has not authorized it to act,” wrote Circuit Judge Jennifer Walker Elrod in the court’s opinion.
The ruling came in response to a legal challenge from broadcasters and broadcasting organizations who argued that the FCC was overstepping its regulatory boundaries. The Texas Association of Broadcasters was among the groups opposing the FCC’s move, with other broadcasting organizations joining the fight against what they viewed as federal overreach.
First Amendment Concerns and FCC Response
Religious broadcasters had particularly strong objections to the FCC’s reporting requirements. The National Religious Broadcasters (NRB) had argued that the order violated both First and Fifth Amendment rights, specifically citing concerns about a “non-binary” gender option included in the reporting form. While the court did not rule on these constitutional questions, instead deciding the case on statutory grounds, religious broadcasting organizations still celebrated the outcome.
“NRB is very encouraged by the Fifth Circuit’s strong defense of the First Amendment,” said Mike Farris.
The FCC itself appears divided on the issue. Current FCC Chair Brendan Carr publicly supported the court’s findings, revealing internal disagreement about the agency’s authority in this area. Carr had previously dissented when the commission voted to reinstate the reporting requirement earlier this year.
“As I said in my dissent back then, the FCC’s 2024 decision was an unlawful effort to pressure businesses into discriminating based on race & gender,” stated FCC Chair Brendan Carr.
Background and Implications
The FCC had claimed authority for the reporting requirement under the 1992 Cable Television Consumer Protection and Competition Act. However, the court interpreted that legislation narrowly, finding that it did not extend to collecting demographic information across all broadcasting entities. The ruling maintains a status quo that has existed since 2001, when the FCC suspended similar data collection efforts following another court decision on Equal Employment Opportunity requirements.
“Texas broadcasters are immensely pleased with the outcome of this ruling,” said TAB President Oscar Rodriguez.
The court’s decision emphasizes the limits of regulatory authority and the necessity for clear congressional directives when federal agencies seek to impose new requirements on private businesses. The FCC has indicated it will not appeal the decision, effectively ending this attempt to collect workforce diversity data from broadcasters. For the foreseeable future, broadcasters will remain exempt from the demographic reporting requirements that the FCC had sought to implement.
