HRRecruitingAlert.com » Courts look at rehiring policies

Courts look at rehiring policies

July 29, 2008 by Sam Narisi
Posted in: In This Week's E-Newsletter, Job screening tests, Latest News & Views, Law

In one recent case, a uniform, non-discriminatory hiring policy got the company hit with a big lawsuit.

Here’s what happened:

A chunk of the employer’s workforce was laid off. The company had a policy of not rehiring laid-off workers for at least a year after their termination.

A group of employees affected by the policy sued. Why? They claimed it disproportionately weeded out applicants over 40 years old.

Even though it was a uniform policy applied indiscriminately to any laid off worker, the company lost the case. Why? Simple statistics:

More than 90% of the people laid off — and therefore affected by the policy — were over 40. (The employees couldn’t sue for the layoff itself, but courts apply different standards to hiring decisions.)

Now, the company will have to settle or fight a costly battle in front of a jury.

Cite: E.E.O.C. v. Allstate Insurance Co.

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One Response to “Courts look at rehiring policies”

  1. Tony Denkins Says:

    I always amazed at how so many companies/HR departments oprerate with blinders on. Adverse Impact will sneak up on you if your not careful.

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