Court Upholds the Gainful Employment Rule for the 4th Time

On June 28, 2017, a federal court upheld the gainful employment rule for the fourth time. Judge Rudolph Contreras denied the American Association of Cosmetology Schools’ (AACS) motion for preliminary injunction, issuing a narrowly tailored ruling to give only AACS member schools more time and flexibility in submitting alternative earnings appeals. He specifically took care to “avoid upending the entire regulatory scheme” for gainful employment. A week prior to this ruling, the US Department of Justice had argued in court that continued implementation of GE serves the public interest.