On April 9, 2014, the Sixth Circuit of Appeals not only affirmed summary judgment in EEOC v. Kaplan Higher Education Corp., et al. but also chastised the EEOC for applying a flawed methodology in its attempts to prove that using credit checks as a pre-employment screen had an unlawful disparate impact against African-American applicants.
The EEOC has recently made policing employers’ use of credit checks on employees a big priority of theres. But, it hasn’t gone well for the commission. It didn’t go well when they sued Kaplan Education for their use of credit checks as a hiring screen—and it really didn’t go well when they decided to appeal the decision.
As a lawyer, you know that you’re about to have a bad day when an appellate court opinion,in discussing your client’s position, starts this way…
The EEOC suffered a major setback on April 9th when the Sixth Circuit Court of Appeals affirmed summary judgment in the highly watched background check case of EEOC v. Kaplan Higher Education Corporation, et al.
We have written a few times about the EEOC’s closer inspection of background checks and the use of criminal records in employment decisions because of their potential adverse impact on classes of applicants.
In a harsh rebuke of the EEOC’s method of attempting to prove that Kaplan Higher Education Corp.’s consideration of credit history for hiring in select positions was discriminatory, the Sixth Circuit, only three weeks after oral argument, issued a decision upholding the federal district court’s order excluding the EEOC’s expert opinion from evidence and dismissing the EEOC’s case.
The EEOC Loses the Statistical Battle Trying to Prove Disparate Impact Against Employers Using Background Checks in Hiring Decisions
On January 28, 2013, the Northern District of Ohio granted Defendant Kaplan Higher Education’s motion for summary judgment in EEOC v. Kaplan Higher Education Corp. [pdf].
Anyone looking for a case rich in irony need look no further than EEOC v. Kaplan Higher Learning Edu. Corp., Case No. 1:10 CV 2882 (N.D. Ohio, Jan. 28, 2013).