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Client Alert: Important Court Decision On ED Incentive Compensation Regulations

June 6, 2012

Yesterday, the federal appeals court in Washington, D.C. issued its longawaited decision in the court case brought by the Association of Private Sector Colleges and Universities (APSCU) challenging the U.S. Department of Education’s 2010 “incentive compensation” regulations, and other parts of ED’s program integrity regulations. In its decision, titled Association of Private Sector Colleges and Universities v. Duncan, the Court of Appeals upheld ED’s new incentive compensation regulations, which have been in effect since July 1, 2011, but instructed ED to clarify two points, as noted below.

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