Target to pay $2.8M to rejected candidates

Tests given to job-seekers had an ‘adverse impact’ on women, blacks and Asians

MINNEAPOLIS— Target Corp. has agreed to pay $2.8 million (U.S.) to thousands of rejected job candidates for upper-level positions because tests they were given disproportionately screened out applicants based on their race or sex. The payout was announced Monday by the Minneapolis Area Office of the U.S. Equal Employment Opportunity Commission and will be dispersed among more than 3,000 people, said Julie Schmid, acting director for the agency in Minneapolis.

“The tests were not sufficiently jobrelated,” Schmid said.

“It’s not something in particular about the contents of the tests. The tests on their face were neutral. Our statistical analysis showed an adverse impact. They disproportionately screened out people in particular groups,” namely blacks, Asians and women.

Target spokeswoman Molly Snyder said the company has and continues “to firmly believe that no improper behaviour 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.”

The tests, which were given to applicants for “high-level, non-hourly” positions, came under investigation by the EEOC in 2006, Schmid said.

In addition, the EEOC said it found that one of the assessments that the Minneapolis-based Target formerly used and that was performed by psychologists had violated the federal Americans with Disabilities Act.

Target stopped using the tests during the EEOC’s investigation. Target also agreed to better track its testing process and check for impact based on race, ethnicity and sex.

“We applaud Target for taking corrective action to ensure the validity of their hiring practices,” said EEOC Chair Jenny R. Yang.

“This resolution demonstrates the benefits of working with EEOC and serves as a model for businesses committed to effective and lawful selection procedures.”