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Home›Uncategorized›The Future of Fines under the Clery Act Post SEC v. Jarkesy

The Future of Fines under the Clery Act Post SEC v. Jarkesy

By Matthew Lynch
January 2, 2025
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The landmark Supreme Court decision in SEC v. Jarkesy has cast a long shadow over the Clery Act, particularly regarding the enforcement of fines. The ruling, which affirmed the need for an administrative law judge to adjudicate individual penalties, has raised significant questions about the future of fines imposed under the Clery Act.

While the Clery Act has long been enforced through administrative action and fines, Jarkesy has introduced a new layer of complexity. The decision suggests that individual fines, like those levied against colleges and universities for Clery Act violations, may now require a formal adjudication process before an ALJ. This could mean a shift away from the current system of negotiated settlements and administrative penalties.

The impact of Jarkesy on Clery Act enforcement is still unfolding. Some argue that the decision will significantly hinder the Department of Education’s ability to effectively enforce the Act, as the administrative process can be lengthy and resource-intensive. Others believe that the ruling will enhance fairness and transparency in Clery Act enforcement, ensuring that institutions are given a fair hearing before facing substantial financial penalties.

The implications of Jarkesy on Clery Act fines are far-reaching. Institutions must now carefully consider the potential legal challenges associated with administrative penalties. The Department of Education, in turn, will need to reassess its enforcement strategies in light of the Supreme Court’s decision. The future of fines under the Clery Act remains uncertain, but it is clear that Jarkesy has ushered in a new era of legal complexity and scrutiny.

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