Austin is getting ready to bring in reinforcements as federal investigators keep digging into City Hall’s hiring playbook.
Next Thursday, city officials plan to ask the City Council for permission to hire outside legal counsel to help navigate the U.S. Department of Justice’s civil-rights investigation into Austin’s hiring and employment practices. The move would amend the city’s existing legal-services agreement with the law firm Greenberg Traurig and add funding that would lift the contract cap to $176,000, with money listed as available in the City Attorney’s FY2025-26 budget.
According to the City of Austin, the agenda item would authorize an additional $100,000 for Greenberg Traurig’s work tied to the Justice Department inquiry, bringing the total contract amount to no more than $176,000.
The Justice Department opened the investigation in September to determine whether Austin has used employment practices that discriminate based on race, color, sex, or national origin in violation of Title VII, the Justice Department said when it announced the probe. In that statement, Assistant Attorney General Harmeet K. Dhillon said the department "will not tolerate discriminatory race-based employment practices and DEI policies."
City officials told KXAN that the investigation is still underway and that Austin has been responding to the department’s requests. Mayor Kirk Watson and his office have said they are confident the city’s employment practices comply with federal law.
Cities routinely bring in outside counsel to help manage communications and document production when federal investigators come calling, and the DOJ has opened similar investigations this year into other public entities and institutions, as reported by the Houston Chronicle. Local advocates expect Austin to stand by its policies; Dustin Rynders of the Texas Civil Rights Project told The Daily Texan that he anticipates the city will push back if challenged, although any finding of a violation could force changes.
What Council Will Weigh Next Thursday
If the council signs off on the request, the amendment would give the City Attorney authority to secure additional outside counsel services to handle communications with the DOJ, review documents, and prepare for potential litigation. The City of Austin docket identifies Greenberg Traurig as the firm and lists a $100,000 increase to the contract, raising the cap to $176,000 and charging the cost to the City Attorney’s FY2025-26 budget.
Legal Stakes And What Comes Next
A DOJ pattern-or-practice investigation under Title VII can wrap up in several different ways. The department can close the probe without taking action, negotiate voluntary changes with the city, or file a lawsuit in federal court seeking injunctive relief and other remedies.
In announcing the Austin investigation, the Justice Department stressed that it will vigorously protect equal opportunity as it reviews the city’s practices. That leaves the door open to a formal enforcement action if investigators conclude Austin has used unlawful employment practices, although city officials say they will fight any such claim.
The council is scheduled to take up the contract amendment next Thursday. If it passes, Austin will have formal outside counsel in place as the federal investigation moves forward, while city leaders continue to say they are cooperating with the DOJ and defending the city’s hiring policies at the same time.
