Pepsi paid $3.1 million in financial relief and agreed to change its policy regarding criminal background checks. More than 300 black applicants were denied job opportunities because something appeared in the criminal background check that caused the applicant to be denied a job. According to the EEOC, excluding applicants based on the results of a criminal background check can create an adverse impact based on race in violation of Title VII.
If background checks are conducted, the EEOC recommends that employers take into consideration the nature and gravity of the offense, the time that has passed since the conviction and/or completion of the sentence, and the nature of the job sought in order to be sure that the exclusion is important for the particular position.
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