You’ve heard about the feds taking a closer look at the use of credit checks in applicant screening. Now the EEOC has planted the flag on the issue in a federal lawsuit in Ohio.
The agency has sued Kaplan Higher Education Corporation, a nationwide provider of postsecondary education, for allegedly rejecting job applicants based on their credit history.
The practice resulted in the company’s discriminating against a class of black job applicants nationwide, the EEOC said, adding that Kaplan had been using the discriminatory procedure since 2008.
The heart of the matter: Although some employers have argued that an applicant’s financial history offers a glimpse into his or her character, the feds’ position is that in Kaplan’s case, this kind of information is neither job-related nor justified by business necessity.
Hiring practices like Kaplan’s have a discriminatory impact because of race, the EEOC charged.
The case is EEOC v. Kaplan Higher Education Corp., Civil Action No. 1:10-cv-02882, U.S. District Court for the Northern District of Ohio.
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