Target Fined $2.8M For Racist Hiring Practices

August 27, 2015  |  

On Monday, the Equal Employment Opportunity Commission (EEOC) announced Target will have to pay $2.8 million to previous applicants due to racist and sexist claims embedded into the store’s previous employment assessments.

The $2.8 million fee is one the largest any company has been ordered to pay due to discriminatory practices. After complaints from applicants, the EEOC launched an investigation into the retail powerhouse. The agency found three employment tests previously used by Target screened out applicants based on race and sex. Target administered the test to applicants that did not qualify for overtime, which are typically upper-level positions. The tests disproportionately left African Americans, Asians and women out of the pool to be hired.

“The test were not sufficiently job-related and consistent with business necessity, and thus violated Title VII of the Civil Rights Act of 1964,” said the EEOC to Fortune.

Target is said to have agreed to the settlement due to the fact none of the tests are still in use, not to mention the enormous resources it would take to fight the case.

“We continue to firmly believe that no improper behavior occurred regarding these assessments,” said Target spokeswoman Molly Synder.

But the EEOC has found otherwise. Not only is Target in the hot seat for discriminating on the factors of race and sex, but also for not adhering to the Americans With Disabilities Act due to it’s psychological testing.

The retail chain asked applicants questions that were then interpreted by psychologists and Target used these summaries in its hiring process. The problem here? No employer has the legal right to do any kind of medical testing in the pre-hire phase.

Target will now have to pay $2.8 million to thousands of individuals who applied during this time of questionable intake. Target says it will pay more attention to its hiring practices and the EEOC will be making sure of this each year.

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