Most major companies conduct criminal background checks, but using the records to rule out minorities could cost you $3.1 million.
That’s how much Pepsi Beverages Co. has agreed to pay and it’s because it ruled out applicants who had arrest, not conviction records, reports ABC News.
Pepsi’s screening policy excluded more than 300 black applicants.
Under Equal Employment Opportunity Commission laws, it’s illegal to deny someone employment because of criminal records if it’s irrelevant to the job or if the records are used to exclude minorities from employment opportunities.
Since the suit, the company says it’s taking a more “individualized approach” to its hiring policy and will open up jobs for those who were turned down under the former policy if they’re qualified and still interested in the positions.