Target Corp. (NYSE:TGT) has agreed to a settlement of US$3.74mln after a lawsuit was filed claiming the retail giant’s screening process for job applicants discriminated against black and Hispanic prospects.
The Minneapolis-based retailer has been accused of violating Title VII of the Civil Rights Act of 1964, which is meant to protect employees from discrimination based on race, sex, colour, national origin, and religion.
The discount retailer performed background checks on job seekers, disqualifying a disproportionate number of black and Hispanic applicants due to prior convictions unrelated to the position they were looking to fill. Positions included cashiers and stock workers.
Eligible applicants who were denied employment due to convictions since May 2006 will receive either priority hiring or US$1.2mln.
Congrats to the team @NAACP_LDF on this tremendous settlement with @Target! It will break down barriers to opportunity for those whose lives have been upended by the criminal justice system, & will hopefully push employers nationwide to end similar policies & practices. https://t.co/e22gIp0buC
— RaceNYU (@RaceNYU) April 6, 2018
Plaintiffs were represented by attorneys from the NAACP Legal Defense & Educational Fund, as well as other firms.
Jenna Reck, a spokeswoman for Target, said in a statement that while the company no longer inquires about criminal histories, it still considers criminal background information to be an important factor in the hiring process.
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Non-profit organisations that assist people with criminal histories with job searches will receive US$600,000 of the class-action settlement.
With this huge settlement, @NAACP_LDF further secured economic justice and equity in hiring across the nation. The #map of Target stores shows the impact of this legal settlement. Read more (https://t.co/TyrEWA0txy) #Maps @TMI_LDF pic.twitter.com/ijz3qBCeZP
— Megan A. Gall (@DocGallJr) April 5, 2018
Shares of the big-box chain opened at US$71.77 on Friday.
The million-dollar settlement will be official after it is signed off on by a judge in the U.S. District Court in Manhattan.