Dive Brief:
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Target Corp. will pay $2.8 million to more than 3,000 rejected job applicants who had taken pre-screening tests that the U.S. Equal Employment Opportunity Commission (EEOC) flagged as potentially unfair based on race and gender and for people with disabilities. The tests involved upper-level positions in the company.
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The EEOC found the tests and psychological screenings problematic enough to go forward with an investigation, but no there will be no final determination in light of the settlement. Target has discontinued the tests and screenings and has cooperated fully with the investigation, the agency said.
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Target also agreed to keep better records of its hiring practices, to include assessments that would unearth any potential for unfairness to people based on race, gender, or otherwise having potential discriminatory effects.
Dive Insight:
This settlement is among the highest for this kind of case; most of those that are higher involve harassment accusations. The retailer points out that no wrong-doing was ever actually found—this settlement comes before the EEOC launched its full investigation and allows Target to avoid litigation.
Nevertheless, the tests were clearly problematic, conducted by an outside vendor with which Target no longer works. It’s a reminder that retailers must take steps to ensure that their vendors maintain the standards and approaches that fit with their own cultures and meet their demands for quality.