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I sense you did not peruse the linked article, which says tgat the lawsuit was filed in 1996, and "The test was ruled discriminatory in 2012 by the third Manhattan federal judge to handle the case — which included a two-month nonjury trial and repeated trips to an appeals court." That does not sound like the city conceded anything. The recent* development is re the amount of damages.
*Although it isn't recent. The linked article is from 2018.
Edit: OP seems to have changed the link. When I initially clicked the link, it took me here: https://nypost.com/2018/09/19/city-may-have-to-pay-out-1-7b-over-biased-teaching-exam/. Now it takes me here: https://nypost.com/2023/07/15/nyc-bias-suit-black-hispanic-teachers-and-ex-teachers-rich/
The city seemingly agreed to stop fighting the case when DeBlasio set aside the $2bn for compensation. That was at least in part for ideological reasons since it seems unclear why the city couldn’t have appealed to a higher level court - as someone else said, current SCOTUS might well rule all these aptitude tests universally acceptable (ie remove the requirement to prove unequal outcomes are justified by the job’s requirements), and that really isn’t something the kind of person who works in the NYC Department of Education wants.
Again, the city lost because to prove the case it would have to show that the better someone did on the test, the better a teacher they became. This would be trivial to prove even after the fact, since g is correlated with everything, but for some reason the city chose not to do it.
Have we considered that the city is just incompetent?
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The trial court verdict on the issue of whether the tests were discriminatory was in 2012. Gulino v. Bd. of Educ. of City School Dist. of NY, 907 F. Supp. 2d 492 (SD New York 2012). That was during the Bloomberg Administration. DeBlasio took office in 2014.
The DeBlasio administration appealed the damages award in 2019. See timeline here
As noted in the current version of the Post article, the City initially prevailed in 2003, but the decision was reversed in part on appeal. As described by the trial court in 2012: "In 2003, after five month bench trial, Judge Motley entered judgment in favor of the Board and SED, finding that their use of the Core Battery exam and the LAST did not violate Title VII. In 2006, the Second Circuit Court of Appeals vacated the District Court's judgment with respect to the LAST, and remanded the case."
As for g being correlated with everything, that might well be true, but is it legally relevant? Because this is how the court described the governing law in 2012:
Honestly, the argument that the City rolled over on a case that was filed in 1996 but not settled until 2023 is difficult to take seriously unless there is a ton of evidence marshaled in its favor.
All of these are applicable to generic IQ tests (verbal and spatial skills are fully representative of a lot of work eg. teachers or really anyone with a job that involves words/numbers/metrics can do).
But the test was not a generic IQ test, was it? The complaint was about a specific test. The issue is whether that test meets the criteria, not whether a generic IQ test would have.
In fact, the plaintiffs originally challenged two tests, but prevailed only re one of them. The other one apparently met the criteria.
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