Target settles proposed class action over background check policy for more than $3M
Tags : FCRA Compliance
The suit, which includes an estimated 41,000 class members, claimed the retail giant illegally disqualified applicants who were convicted of certain misdemeanor or felony crimes or who they believed inaccurately described their criminal convictions.
The plaintiffs in the suit claimed Target’s policy “imports the racial and ethnic disparities that exist in the criminal justice system into the employment process,” compounding the negative impact on black and Latino applicants.
Under the terms of the settlement, Target will pay nearly $3.75 million to the class members affected by the allegedly discriminatory background check practices. What’s more, Target will offer open positions to the estimated 41,000 class members before other applicants. Applicants whose criminal histories disqualify them under the revised hiring criteria or other reasons will not receive payment, according to Law360.com.
Additionally, the terms of the agreement will require Target to hire consultants to overhaul its background check policy and process and give $600,000 to nonprofits that help the formerly incarcerated find work.
Source: Law360.com, 4/5/2018
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