Payne v. EEOC

Payne v. EEOC: Court Rules Privacy Act Doesn't Apply to Private Contractors

What Happened
An employee named Payne sued both the Equal Employment Opportunity Commission (EEOC) and Sandia National Laboratories under the Privacy Act, claiming violations of federal privacy protections. Sandia is a private corporation that operates under government contracts. Payne also demanded a jury trial for the case.

What the Court Decided
The Tenth Circuit Court of Appeals upheld a lower court's decision to dismiss Payne's Privacy Act claims against all defendants. The court ruled that the Privacy Act only allows lawsuits against actual U.S. government agencies, not private companies like Sandia—even when those companies work closely with the government. The court also determined that Payne had no constitutional right to demand a jury trial in this type of case.

Why This Matters for Workers
This ruling clarifies an important limitation for employees of government contractors. Workers at private companies that do government work cannot use the Privacy Act to sue their employers for privacy violations, even if the company handles sensitive government information. These employees must rely on other laws and protections, which may offer different or more limited remedies than what's available against actual government agencies.