Target pays $2.8 million, agrees to drop hiring tests — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Target pays $2.8 million, agrees to drop hiring tests

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The Target retail chain, headquartered in Minneapolis, has agreed to stop using three pre-employment assessments that the EEOC claimed were discriminatory.

Two tests screened women and minorities from professional, exempt positions. Another test, administered by psychologists, met the ADA’s definition of a medical examination. The EEOC ruled the tests were not sufficiently job-related and of business necessity to be legal.

Target agreed to pay $2.8 million to applicants who had to take the tests.

The EEOC also claimed Target failed to preserve data to measure the assessments’ validity. In addition to discontinuing the illegal tests, Target will perform a validity study of assessments currently in use for exempt positions and those that the company uses in the future.

Note: Employers must maintain records showing the pre-employment assessments they use are valid. All assessments must be continuously tested and modified as needed.

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