On August 24, 2015, the Equal Employment Opportunity Commission (EEOC) announced a $2.8 million settlement with Target Corporation. The news release can be found at: http://www.eeoc.gov/eeoc/newsroom/release/8-24-15.cfm.
Following an investigation the EEOC alleged that Target was using three employment assessments, which disproportionately screened out applicants on the basis of race and sex for exempt-level professional positions. The tests were not found to be sufficiently job-related or consistent with business necessity, violating Title VII of the Civil Rights Act of 1964. In addition, the EEOC found that one also violated the Americans with Disabilities Act (ADA) by having applicants assessed by a psychologist in a pre-employment medical exam, which is prohibited by the ADA. Additionally, EEOC alleged that Target failed to maintain sufficient records needed to assess the impact of their hiring process.
As part of the settlement, Target has agreed to discontinue use of the tests that violated the law as part of its exempt-level employment selection procedures. Target has also made changes to their applicant tracking systems to ensure they are maintaining sufficient records. Target will validate all current and future assessments and monitor their use for adverse impact based on race, ethnicity, and gender. Target will also provide the EEOC with a detailed summary of the assessments and the adverse impact analyses conducted. Target has also agreed to retain an outside consultant to provide annual training to all personnel involved in the development and implementation of exempt assessments.
This settlement underscores the importance of examining statistically significant disparities. This should include identifying the components and determining if any have statistically significant disparities. Components that do have statistically significant disparities must be validated to demonstrate that they are predictors of successful job performance.
Please contact us by calling (732) 446-2529 or sending us an e-mail at glennbarlett@gbcs.net if you are interested in discussing the EEOC’s settlement with Target.