Economy

Target Forced to Pay $2.8 Million to Women and Minority Applicants

As a result of a lawsuit by the Equal Employment Opportunity Commission, the popular mega-chain Target has to pay out nearly $3 million to the more than 3,000 applicants who were discriminated against while vying for management positions.

via  Jay Reed
via Jay Reed

According to the lawsuit, the groups that were “disproportionately screened out” by a biased hiring exam were women, African Americans and Asian American job seekers, according to the EEOC.

The settlement concludes a long investigation that began when the EEOC filed the complaint back in 2006. The $2.8 million payout, which will be distributed among the affected candidates, is one of the highest for discrimination in hiring.

In addition to violating the Civil Rights Act of 1964, the EEOC found  reasonable cause to believe the hiring test also violated the Americans with Disabilities Act. A component of the test involved an examination by a psychologist before an offer could be made, a practice that is prohibited by the ADA.

Target discontinued its use of the problematic assessment test during the investigation, but still denies any wrongdoing.

Media Resources: RH Reality Check 8/26/15; Star Tribune 8/24/15;