Target has agreed to pay $2.8 million to resolve U.S. Equal Employment Opportunity Commission allegations that it violated several nondiscrimination laws. The agreement was reached through the EEOC’s conciliation process.
During an investigation, the EEOC found reasonable cause to believe that the retailer was using employment assessments that disproportionately screened out applicants for exempt professional positions based on race and sex. The tests were not sufficiently job-related and consistent with business necessity, and thus violated Title VII of the Civil Rights Act of 1964, the commission said in a press release. A third assessment in which psychologists conducted a pre-employment medical examination violated the Americans with Disabilities Act, according to EEOC.
The company also committed recordkeeping violations by failing to maintain records sufficient to assess the impact of its hiring procedures.
During EEOC’s investigation, Target discontinued the use of those tests. It also made changes to its applicant tracking systems to ensure that it can assess adverse impact.
In addition to the monetary settlement, Target agreed to conduct a study of all current and future assessments for adverse impact based on race, ethnicity and gender. It also will provide EEOC with an annual summary of its analysis to conduct annual personnel training on assessments and recordkeeping.
According to EEOC, thousands of individuals who were adversely affected by the assessments will share the settlement. “We are pleased that Target chose to work with us to reach this conciliation agreement and that through our joint efforts, we have been able to bring about real change at Target without resorting to protracted litigation,” said Julianne Bowman, an EEOC district director.
For more information on nondiscrimination laws, visit Thompson’s HR Compliance Expert.