Target pays $3.9 mil to settle background check lawsuit

Retail giant Target, headquartered in Minneapolis, has agreed to settle a long-running discrimination suit alleging its policy of not hiring people with criminal convictions disproportionately affects black and Hispanic job applicants.

According to the class-action suit, between 2008 and 2016, Target screened out 41,000 black and Hispanic applicants because of criminal convictions.

Under the settlement, Target will pay $3.9 million in damages. Rejected applicants will be placed on a priority hiring list. Those who are not qualified or live too far from a Target store will receive $1,000 each. The cost for this portion of the settlement is estimated at $1.2 million.

Target will donate $600,000 to agencies that help find jobs for those with criminal convictions. Up to $1.9 million will go to attorney fees and court costs.