On March 4, 2011, the Fifth Circuit Court of Appeals (covering Texas) decided the case of In the Matter of Burnett v. Stewart Title, Inc.
Although Section 525 of the Bankruptcy Code provides that employers may not discriminate against debtors because they filed bankruptcy, the Court held that this does not apply to a private employer who is considering hiring a new employee. Apparently, however, it still means that a private employer can not fire or otherwise discriminate against an existing employee solely because he or she filed bankruptcy.
Further the language is still clear that a governmental employer may not discriminate against an existing or contemplated employee solely because he or she filed bankruptcy.
