Target Settles Class Action on Background Checks

MANHATTAN (CN) - Target will pay $3.74 million to settle a federal class action filed Thursday over its alleged practice of using background checks to disqualify job applicants for convictions unrelated to the positions they sought.

U.S. District Judge Deborah Batts must still sign off on the settlement, which includes $1.2 million or “priority” hiring for eligible black and Hispanic applicants who were wrongly denied hourly and entry-level jobs since May 2006.

The settlement also calls for experts to review Target’s policies on use of criminal histories in hiring and advise reforms.

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