The Wall Street Journal is reporting that Target Corporation has agreed to pay $2.8 million to resolve an EEOC Commissioner's charge of discrimination. Based on the investigation, the EEOC determined hat three employment assessment tests formerly used by Target disproportionately screened out applicants for exempt-level professional positions based on race and sex.
In addition, EEOC found that one of the assessments Target formerly used in its hiring process also violated the Americans with Disabilities Act (ADA). The EEOC determined that this particular assessment performed by psychologists on behalf of Target was a pre-employment medical examination. Employers are prohibited by the ADA from subjecting applicants to medical examinations prior to an offer of employment.
The EEOC's investigation revealed that thousands were adversely affected when Target used these assessments in its hiring process. The monetary settlement will be divided among these individuals as appropriate. Target will pay for a claims administrator to distribute the funds.
During EEOC's investigation, Target discontinued the use of those tests that violated the law. Target has agreed that it will not use these assessments again as part of its exempt-level employment selection procedures. In addition, Target has made changes to its applicant tracking systems to ensure that the collection of data is sufficient to assess adverse impact of any pre-employment assessments it conducts.
Read more: Wall Street Journal