Target has settled a class-action suit with the NAACP Legal Defense & Education Fund for $3.7M, over unfair hiring practices. The suit claimed that the retail giant used criminal background checks to deny jobs to African Americans and Latinos. The complaint named two African Americans applicants who received conditional job offers from Target. After discovering decade-old convictions on the applicants’ records, Target rescinded both offers.
According to the plaintiffs, Target’s background check policy had an unjust and unequal impact on African American and Latino applicants due to racial disparity in the justice system. For its part, Target admits many past applicants received inadvertent rejections. However, the retailer insists it has changed its hiring process to prevent this.
Besides the major payout, Target has agreed to the following terms as part of the settlement:
- The company will work with experts to re-evaluate their current employment screening policies.
- Target will contribute to several non-profits that help to secure jobs for individuals with criminal records.
- The company will establish a process for the members of the class action to receive entry-level jobs at their U.S. stores, or receive a cash award (if disabled, retired, or already employed elsewhere).
Target now gathers criminal background info during the final stages of hiring. That practice may have saved them millions if only implemented sooner.
Our recommendation: review your screening policies often to ensure they’re fair and up-to-date.
