Employers are usually counseled to use credit background checks only for those positions in which the employee will be in a position involving financial transactions of the company because of the concern of the disparate impact of that information on minorities. The EEOC scared the employment community a couple years ago by suing Kaplan University for running credit background checks for positions with financial responsibility — after Kaplan found out that some of its financial aid officers were self dealing and stealing student financial aid. Last week the 6th Circuit Court Appeals here http://www.opn.ca6.uscourts.gov/opinions.pdf/14a0071p-06.pdf affirmed the dismissal of the complaint by the district court. The concluding paragraph sums up the 6th Circuits thoughts on the lawsuit:
We need not belabor the issue further. The EEOC brought this case on the basis of a homemade methodology, crafted by a witness with no particular expertise to craft it, administered by persons with no particular expertise to administer it, tested by no one, and accepted only by the witness himself. The district court did not abuse its discretion in excluding Murphy’s testimony. The district court’s judgment is affirmed.
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