The Supreme Court of the United States just handed a major setback to prison giant The GEO Group — clearing the way for a lawsuit accusing the company of forcing immigration detainees to work for $1 a day to move toward trial.

In a unanimous decision, the justices rejected GEO’s attempt to shut down the case before it reaches a jury.

Writing for the Court, Elena Kagan delivered a blunt message: if GEO loses at trial, it can appeal then — but not now.

“If eventually found liable, GEO may of course appeal,” Kagan wrote. “But GEO must wait until then.”

The Immunity Argument Falls Flat

GEO argued it shouldn’t face trial at all because it was acting under the direction of U.S. Immigration and Customs Enforcement (ICE). In legal terms, the company claimed “derivative sovereign immunity” — essentially saying it should share in the federal government’s protection from lawsuits.

The Court wasn’t buying it.

The justices said whether federal officials actually authorized or directed the specific work policies at issue is a factual dispute — one that belongs in a courtroom, not dismissed on appeal.

While all nine justices agreed the appeal should be rejected at this stage, Samuel Alito declined to join Kagan’s opinion, and Clarence Thomas signed on only in part — subtle signals that not everyone agreed on the reasoning, even if they agreed on the result.

$1-a-Day Labor and Threats of Solitary

The lawsuit, filed in 2014, centers on GEO’s Aurora, Colorado detention facility.

Detainees allege they were:

• Required to clean common areas.

• Threatened with solitary confinement if they refused.

• Paid just $1 per day for additional jobs like cooking and laundry — when Colorado’s minimum wage was about $8 per hour.

The plaintiffs say that arrangement violated federal anti-forced labor laws. They also argue GEO was unjustly enriched under Colorado law by slashing labor costs through detainee work programs.

As of January, roughly 1,200 people were being held at the Aurora center, according to Rep. Jason Crow (D-Colo.) after an oversight visit.

Not a Final Verdict — But a Big Step

The ruling does not mean detainees have won. It means GEO has to defend itself in court.

That matters.

GEO warned that exposing contractors to trials like this could deter companies from bidding on federal detention contracts, driving up taxpayer costs. The justices declined to short-circuit the case on that basis.

Now, unless GEO settles, the company faces the prospect of a public trial scrutinizing how detainee labor programs actually operate inside privately run immigration detention centers.

Why It’s Bigger Than One Facility

The case lands amid renewed debate over the federal government’s reliance on private detention companies.

GEO’s stock surged after Donald Trump’s 2024 election, amid investor expectations of expanded private detention contracts. But shares have since fallen below pre-election levels.

If this lawsuit ultimately results in liability — or sets precedent limiting immunity defenses — it could reshape how private prison contractors structure detainee work programs nationwide.

For now, the Supreme Court has made one thing clear:

A federal contract is not a get-out-of-trial-free card.