Here is an update on the EEOC’s E-RACE (Eradicating Racism and Colorism from Employment) Program. Ongoing for the past several years, E-RACE focuses on race and color discrimination in the workplace with a particular focus on employment screening methods (such as background and credit checks) that are prone to have adverse impact. Here, it is important to recall that adverse impact occurs whenever a seemingly neutral “test” unintentionally results significantly lower selection rates for protected groups of persons. (A classic example is that if the physical ability requirements are extreme, many women will be disqualified from certain labor jobs.)

Since credit and background checks are quite susceptible to having adverse impact, businesses must be sure that their use is job related (just as they must for any assessment method that has adverse impact). Not only is this consistent with the law, it also prevents the needless disqualification of job applicants who otherwise may become excellent employees.

Reid Klion