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EEOC Sues Over Use of Credit Histories

Published by on January 3, 2011

In a press release on December 21, 2010, the Equal Employment Opportunity Commission (EEOC) announced that its Cleveland Field Office has filed a lawsuit against Kaplan Higher Education Corporation, a provider of postsecondary education.  More after the break. The EEOC alleges that since at least 2008, Kaplan has unlawfully discriminated against a nationwide class of […]

In a press release on December 21, 2010, the Equal Employment Opportunity Commission (EEOC) announced that its Cleveland Field Office has filed a lawsuit against Kaplan Higher Education Corporation, a provider of postsecondary education.  More after the break.

The EEOC alleges that since at least 2008, Kaplan has unlawfully discriminated against a nationwide class of black job applicants by refusing to hire the applicants based on their credit history.  The EEOC claims that this hiring practice constitutes a disparate impact because of race in violation of Title VII of the Civil Rights Act of 1964 and is neither job-related nor justified by business necessity.  Regional Attorney Debra Lawrence of EEOC’s Philadelphia District Office, which oversees portions of Ohio, stated “Employers need to be mindful that any hiring practice be job-related and not screen out groups of people, even if it does so unintentionally.”  Additional articles and commentary relating to the EEOC’s lawsuit against Kaplan include:

http://www.nytimes.com/2010/12/22/business/22kaplan.html

http://www.washingtonpost.com/wp-dyn/content/article/2010/12/21/AR2010122105136.html

http://www.delawareemploymentlawblog.com/

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