Target Corp. has agreed to pay $2.8 million to settle a hiring discrimination claim filed by the U.S. Equal Employment Opportunity Commission.
The EEOC says three employment assessments formerly used by the Minneapolis-based retailer disproportionately screened out applicants for professional positions based on race and gender. It says the tests were not sufficiently job-related. The EEOC also says an assessment that was performed by psychologists violated the Americans with Disabilities Act, which prohibits employers from subjecting applicants to medical exams prior making a job offer.
The EEOC says thousands of people were adversely affected, and the settlement money will be divided among them.
Target agreed to take several steps to ensure the validity of its hiring process, including keeping better data for assessing the impact of its hiring procedures.