In the Pepsi race discrimination lawsuit, the beverage company is accused of instituting a nationwide criminal background check policy that was so broad that it negatively affected black employees.
Rather than choosing to fight out the case in federal court, Pepsi agreed to pay $3.13 million to affected applicants, announced the Equal Employment Opportunity Commission (EEOC).
According to the EEOC, more than 300 black applicants were adversely affected when Pepsi applied an overly broad criminal background check policy that disproportionately excluded black applicants.
Under the 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. Additionally, applicants were denied employment if they have been arrested or convicted of some minor offenses.
While conducting a criminal background check on employees is not illegal, employers must be very careful when adopting a uniform policy. The unfortunate fact is that in many areas of the country, blacks are disproportionately arrested and convicted of offenses. So when a company adopts a broad policy like Pepsi's that may seem race-neutral on its face, the policy may still be considered illegal if it has a disproportionate impact on minority groups.
Instead of adopting broad policies that exclude all applicants who have ever been arrested or convicted of petty offenses, the EEOC urges employers to take into consideration the nature and gravity of the offense, the time that has passed since the conviction, and whether the offense bears any relation to the job sought.
In the Pepsi race discrimination lawsuit, the company was accused of having a criminal background check policy that negatively impacted black applicants. The company ultimately decided to change its policy and pay affected applicants $3.13 million in damages.
Related Resources:
- Find a Chicago Employment Attorney (FindLaw)
- Pepsi Beverages pays $3.1 million to settle federal race discrimination charges (The Associated Press)
- Discrimination & Harassment (FindLaw)
- Ask A Question about Employment Law now (FindLaw Answers)
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