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The retailer was hit with a class-action lawsuit that claimed its hiring and background screening policies discriminate against African-Americans and Latinos.

About the Claim

A class-action lawsuit alleged that Target violated Title VII of the Civil Rights Act of 1964, which prohibits employers from discriminating against people based on race, gender and other protected characteristics. The retail giant was accused of refusing to hire African-American and Latino job seekers who had irrelevant or outdated criminal convictions.

According to a Target spokesperson, the retailer does not ask about criminal records on their job applications but does run criminal background checks on all applicants. This is a common and essential practice, but employers should only consider reportable records when making business decisions.

The plaintiffs in this lawsuit allege that Target refused to hire people based on decades-old convictions that should have no bearing on an individual's ability to earn entry-level positions. If these claims are true, then Target could have been utilizing practices that have a disproportionately negative affect on African-American and Latino job seekers.

The President of the Legal Defense and Educational Fund issued a statement in connection with this lawsuit. It stated that background checks are a legitimate tool for employers but warned that Target's policies were "harmful to many qualified applicants who deserved a fair shot at a good job."

Results of the Suit

Target agreed to pay more than $3.7 million to settle this class action lawsuit. Individuals who may have been denied employment based on background checks run between 2006 and the date of the suit could be eligible for priority hiring today or a cash payout of $1,000. The retailer will also donate $600,000 to non-profit organizations that help former prisoners find jobs.

As part of the settlement, Target agreed to review their current hiring policies. While the retailer did not acknowledge any specific wrongdoing, they did agree to consider adopting more modern guidelines regarding their use of criminal records data during the screening process. They will also work with third-party experts who will help review their current policies and suggest updates as necessary.

The Importance of Fair Screening Policies

Criminal background checks are an essential part of the hiring process. The parties who initiated the lawsuit against Target agreed on this point but felt the retailer used background reports in an unfair and discriminatory manner.

Establishing fair and consistent screening policies is crucial for every employer. There is a growing movement in the United States to help individuals who have minor convictions that should not impede their ability to find jobs now. Ban the Box and other "second chance" policies have been implemented in numerous states and cities. New laws are introduced and passed every year. Employers that fail to update their hiring policies to accommodate these laws could face legal actions like the lawsuit that was filed against Target.

Keeping up with all the laws and regulations that affect your business can be difficult. The team at Backgrounds Online is dedicated to learning about these laws and providing educational resources to help our clients with their ongoing compliance efforts. If you would like to learn more about how we can help enhance your screening efforts, please contact us today.