Courts look at rehiring policies
July 29, 2008 by Sam NarisiPosted 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.
Tags: adea, age discrimination, Allstate, disparate impact, hiring policies

August 1st, 2008 at 3:58 pm
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.