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Pepsi has paid a total of $3.13 million and agreed to make job offers to rejected candidates to resolve a charge of race discrimination filed by the EEOC where they allege that Pepsi's use of criminal background checks resulted in disparate impact against minorities.
The EEOC alleged that more 300 African Americans were adversely affected when Pepsi used criminal background as a reason to disqualify candidates. Under Pepsi’s former policy, job applicants who had been arrested pending prosecution were not hired for a permanent job even if they had never been convicted of any offense.
The EEOC alleged that it was not job related for Pepsi to screen out dock worker applicants for non violent offenses, and that if applicants are convicted thieves, forgers and the like, they should not have been excluded. “When employers contemplate instituting a background check policy, the EEOC recommends that they take into consideration the nature and gravity of the offense, the time that has passed since the conviction and/or completion of the sentence, and the nature of the job sought in order to be sure that the exclusion is important for the particular position. Such exclusions can create an adverse impact based on race in violation of Title VII,” said Julie Schmid, Acting Director of the EEOC’s Minneapolis Area Office. “We hope that employers with unnecessarily broad criminal background check policies take note of this agreement and reassess their policies to ensure compliance with Title VII.”
http://eeoc.gov/eeoc/newsroom/release/1-11-12a.cfm
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