The legal contention centers on whether GEO Group can claim “derivative sovereign immunity,” a protection typically reserved for government entities, arguing they are executing government-directed work. Additionally, GEO Group seeks the right to appeal a lower court’s denial of immunity immediately, rather than post-trial, to preclude unwelcome legal expenses and delays.

The lawsuit emerged in 2014 when detainees at the Aurora Immigration Processing Center, spearheaded by Alejandro Menocal, filed a class-action suit under the federal Trafficking Victims Protection Act and Colorado’s unjust enrichment law. They accused GEO Group of mandating unpaid labor for facility upkeep, with punitive measures like solitary confinement for non-compliance.

GEO Group’s “Voluntary Work Program” permitted detainees to undertake roles such as kitchen and laundry work for $1 daily. However, detainees were required to maintain cleanliness in shared spaces like showers and floors without monetary compensation, per GEO’s sanitation policy. GEO Group argued in federal court that its procedures were aligned with ICE’s directives, which sanction a Voluntary Work Program offering a minimum of $1 per day for completed work.

The district court declined GEO Group’s immunity claim, asserting that ICE did not mandate forced labor or restrict payment to $1 per day, prompting GEO to appeal to the 10th Circuit Court of Appeals. Invoking the “collateral order doctrine,” GEO Group sought immediate appellate intervention, contending that trial proceedings would cause irreparable harm. However, the 10th Circuit determined the immunity denial did not qualify for immediate appeal.

In the Supreme Court, GEO’s legal representation maintained that, “Contractors following the government’s instructions are immune from suit for the same reason government employees are immune. That is, they are doing the sovereign’s work.” Justice Amy Coney Barrett clarified, “We’re not being asked to decide whether you should have a defense to liability. We’re asking whether this is within the collateral order doctrine.”

Remarkably, the Trump administration presented a friend-of-the-court brief, advocating that “derivative sovereign immunity” should cover only lawfully delegated authority, stressing the necessity for trial proceedings to establish factual foundations before addressing immunity appeals. The administration noted GEO’s ongoing ability to secure government contracts despite the absence of an immediate appeal mechanism.

The case garners attention amid the Trump administration’s initiatives for mass deportation, relying on contractors like GEO Group for detainee transportation and housing. The administration’s budget allocated $45 billion to expand detention facilities, aiming for 100,000 detention beds. Currently, ICE holds approximately 66,000 detainees, marking a record high.

A verdict favoring GEO Group could pave the way for federal contractors to immediately challenge lower court decisions denying derivative sovereign immunity. GEO Group Executive Chairman George Zoley highlighted in a recent earnings call, “Since the beginning of 2025, we’ve entered into new or expanded contracts that represent over $460 million in new incremental annualized revenues that are already under contract and are expected to normalize next year. This represents the largest amount of new business that we have won in a single year in our company’s history.”