Posted On: December 24, 2010 by

Kaplan Higher Education Corp. Sued For Discrimination

Kaplan Higher Education Corporation is being sued because it participated in a pattern or practice of unlawful discrimination by refusing to hire a class of black job applicants nationwide. The lawsuit was filed by the Equal Employment Opportunity Commission ("EEOC") on behalf of the class of workers after a lengthy investigation. It a common practice but is one that usually doesn't result in a lawsuit, Kaplan rejected job applicants based on their credit history. This practice has an unlawful discriminatory impact because of race and is neither job-related nor justified by business necessity.

As a result of this practice the company engaged in racial discrimination. This can also create a hostile work environment because of the impact this has on the workplace in general. In order to deny someone a job because of their credit score, one would have to show that a person with poor credit would have a negative impact on their job performance. For example in the banking industry it would probably be okay to not hire a person working with money all day if they had a poor credit score because of the involvement with money.

“Title VII of the Civil Rights Act of 1964 was intended to eliminate practices that serve as arbitrary barriers to employment because of a job applicant’s race,” said EEOC Attorney Debra Lawrence.

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