Pepsi Beverages will pay $3.1 million to resolve EEOC charges that it discriminated against minorities when it refused to hire applicants with arrest records.
The EEOC alleged that Pepsi’s practice of using previous arrests to rule out applicants—even those never convicted of a crime—constituted disparate impact discrimination against minorities. The EEOC claims the practice affected 300 black applicants. Pepsi has agreed to change its policies.
The EEOC has long held thatshould be limited to only those positions where such information is “job-related and of business necessity.” In those cases, the EEOC believes only convictions should count against the applicant, not arrests.
A 2010 survey by the Society for Human Resourcefound that 73% of major employers always check applicants’ criminal records. Only 19% do so because of security or safety concerns related to a specific job.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Missouri firm reaches out to former job applicants
- Minor malady could hinder performance? Always look for easy accommodations
- How to Make Social Networking Websites Work for Your Company
- Balance need for racial diversity against threat of reverse discrimination lawsuit