TGT Target Corp

By Chelsey Dulaney 

Target Corp. has agreed to pay $2.8 million to settle charges that it used assessments that discriminated based on race and sex during its hiring process, the U.S. Equal Employment Opportunity Commission said Monday.

The EEOC found reasonable cause to believe that three assessment tests Target formerly used during its hiring process disproportionately screened out applicants for exempt-level professional positions based on race and sex.

The tests violated the Civil Rights Act of 1964, the EEOC said.

The EEOC also found that an assessment performed by psychologists during Target's hiring process was a pre-employment medical examination, violating the Americans with Disabilities Act, which prohibits employers from subjecting applicants to medical tests before an offer of employment.

In addition, the EEOC found that Target failed to maintain sufficient records to assess the impact of its hiring procedures.

The settlement will go toward the individuals adversely impacted by the hiring process.

A Target spokeswoman said that while the EEOC found the pre-employment assessments had the potential for adverse impact, the commission didn't find any actual disparities in the company's hiring. The spokeswoman noted that the settlement covers a group in the four-figure range, compared to tens of millions of people who have applied for positions at Target in the past decade.

"We continue to firmly believe that no improper behavior occurred regarding these assessments," the spokeswoman said in a statement. "However, in light of the fact that none of the assessments cited by the EEOC are being used today and given the significant resources that would be required to litigate this case, Target agreed to a settlement with the EEOC."

Target has discontinued use of the tests and made changes to its applicant tracking systems to make sure its keeping enough data to assess adverse impact. Target has also agreed to bring in an outside consultant to provide training.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

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(END) Dow Jones Newswires

August 24, 2015 16:27 ET (20:27 GMT)

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