EEOC files discrimination lawsuit on credit background check

credit checks and the role they should, or should not, play in background checks. This has been taken to a new level with the news that the EEOC is filing a discrimination lawsuit based on a credit history background check. On December 21, 2010, EEOC filed a nationwide hiring discrimination lawsuit against Kaplan Higher Education Corporation, citing that the company’s use of job applicants’ credit history discriminates because of race, according to an EEOC statement. The EEOC statement said in part, “Since at least 2008, Kaplan Higher Education has rejected job applicants based on their credit history. This practice has an unlawful discriminatory impact because of race and is neither job-related nor justified by business necessity.” These practices have resulted in the company violating Title VII of the Civil Rights Act of 1964, according to the lawsuit (Civil Action No. 1:10-cv-02882) filed by the Cleveland Field Office of the EEOC in U.S. District Court for the Northern District of Ohio. According to the EEOC statement, “It is a violation of Title VII to use hiring practices that have a discriminatory impact because of race and that are not job-related and justified by business necessity.” The final outcome of this lawsuit will be of keen interest to credit check companies, employees and job applicants.]]>