Target Corp. to pay $2.8M discrimination settlement

Published 9:55 am Tuesday, August 25, 2015

MINNEAPOLIS — 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 said 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 said thousands of people were adversely affected, and the settlement money will be divided among them.

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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.