PREHIRE ASSESSMENTS MISS THE TARGET

Target Corp. agreed to pay $2.8 million to 3,000 applicants in a settlement with the EEOC. The applicants took preemployment assessments for management positions. The assessments seemed neutral on the face, but analysis determined that they disproportionately screened out black, Asian, and female applicants.  Target also put selected applicants for high‐level management positions through assessments that were administered and evaluated by psychologists. The EEOC explained that this qualifies as a preemployment medical exam and violates the Americans with Disabilities Act (ADA). To comply with the ADA, medical exams may only be administered after a job offer is made, and only to determine the applicant’s fitness for the demands of the position. It must be administered to every individual, not just selected applicants.  The EEOC also found that Target failed to maintain adequate records of their hiring practices. This made it difficult for the EEOC to assess the impact of the hiring practices and extent of the discriminatory effect.  The case never went to court. The EEOC is required to go through a conciliation process prior to filing a lawsuit against employers in court. Target cooperated with the EEOC’s investigation and settled prior to going to court, although a Target spokesperson said that the company continues “to firmly believe that no improper behavior occurred regarding these assessments. However, in light of the fact that none of the assessments cited by the EEOC are being used today and given the significant resources that would be required to litigate this case, Target agreed to a settlement with the EEOC.”74 As a result of the complaint and settlement, Target also agreed to:

Implement a HRIS applicant tracking system to ensure that sufficient data is collected to disprove or prove discriminatory practices in the future.

Conducted studies on all assessments to determine if they are valid predictors of the ability to do the job and do not create an adverse impact.

The EEOC issued a statement applauding Target for their cooperation and for making these changes in hiring procedures. An EEOC spokesperson said “This resolution demonstrates the benefits of working with the EEOC and serves as a model for businesses committed to effective and lawful selection procedures.”  Target still denies having any improper hiring practices.

Questions

Target’s assessments were demonstrated to have the ability to discriminate on the basis of gender and race. Which of other groups covered under Title VII of the Civil Rights Act are most likely to see unintentional discrimination from employment testing? Explain your choices.

Evaluate the claim that the psychological test violates the Americans with Disabilities Act.

Explain the Uniform Guidelines on Employee Selection Procedures and adverse impact. How could Target’s assessments have created an adverse impact on applicants for managerial positions? How could the assessments seem neutral, yet be discriminatory?

How does adverse (disparate) treatment apply to the assessments administered by the psychologists? Explain how the disparate treatment may lead to discrimination.

Evaluate the ethics of Target denying having any improper hiring practices while settling with the EEOC and applicants for $2.8 million. If they were not guilty of discrimination, should they have gone to court? What do you think of their rationale for accepting the settlement?

In this case, the journey from complaint to resolution took over 2 years. Explain the procedure that was followed and why it may have taken so long.