Denver, CO — February 26, 2026 — In a unanimous decision yesterday, the Supreme Court of the United Statesmade clear that corporations do not get a free pass simply because they have a government contract.
In The GEO Group, Inc. v. Menocal, the Court rejected an attempt by private prison operator The GEO Group, Inc. to avoid facing forced labor and unjust enrichment claims brought by people detained at a federal immigration facility it operates. The company argued that because it was carrying out federal government work, it should be shielded from being held accountable in court.
Detainees at a Colorado immigration detention center filed the case in 2014, alleging they were forced to work for little or no pay. Among other things, the detainees allege they were forced to do extensive cleaning under threat of solitary confinement, and that GEO unjustly profited from the labor of detainees who were paid $1 per day.
GEO argued that it should be able to halt the detainees’ case indefinitely while the courts evaluated its defense that it was just following directions from the government. The Court unanimously disagreed.
In a 9-0 ruling, the justices confirmed that government contractors are not the government — and they cannot use a federal contract to avoid facing trial. If a corporation harms people, it must answer for its conduct like any other private company.
The decision has implications far beyond this case. Across the country, private corporations run detention centers and other public programs. These multi-billion-dollar industries have expanded as part of the Trump Administration’s mass deportation policies. Yesterday’s ruling reinforces a fundamental democratic principle: public functions do not create private immunity.
“This decision sends a resounding message: no corporation is above the law,” said Rachel Dempsey, Associate Director at Towards Justice. “When companies profit from government contracts, they still have to defend their actions in court.”
The case was brought by detainees at a Colorado immigration detention facility who alleged they were forced to work for little or no pay. Rather than defend its practices at trial, GEO sought to short-circuit the case by claiming a special form of immunity typically reserved for the government itself. The trial court rejected that defense, and GEO tried to appeal. The Supreme Court firmly rejected that effort. The justices made clear that private corporations cannot avoid trial by claiming immunity by virtue of their government work. The ruling ensures that powerful companies cannot drag out or derail cases through endless appeals simply by pointing to their government contracts.
“I am glad that the Supreme Court saw through GEO’s attempt to avoid our story being heard at trial, and I look forward to finally getting our day in court,” said Alejandro Menocal, the lead plaintiff who initiated the case in 2014.
Michael Scimone, Partner at Outten & Golden, said: “This case was filed twelve years ago. This decision means our clients will finally have the chance to show that GEO exploited them to win contracts funded by our tax dollars.”