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Criminal Background Checks
In January 2012, Pepsi agreed to enter into a settlement agreement with the Equal Employment Opportunity Commission (EEOC) to resolve a sweeping charge of race discrimination. The alleged discriminatory practice? The company's criminal background check policy. According to the EEOC, the policy disproportionately excluded African-Americans from employment. Facing the threat of litigation by the EEOC, Pepsi agreed to pay $3.13 million, change its policy, and extend job offers to the alleged victims.
The charge against Pepsi is likely a harbinger of charges to come.
Criminal background checks are ubiquitous in an age in which most criminal records are computerized and easily accessible. According to a 2010 survey by the Society for Human Resource Management, 73% of employers conducted criminal background checks on all applicants, and another 19% performed criminal background checks on selected applicants.
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