A criminal background check for job applicants has become standard operating procedure for many companies. However, companies that routinely conduct criminal background checks should take a hard look at their current policies and procedures. In April, the U.S. Equal Employment Opportunity Commission (EEOC) issued new guidance about the use of arrest and conviction records in hiring. While the guidance does not ban the use of criminal background checks, the EEOC reiterated that using criminal history as a hiring criterion could lead to discrimination charges under Title VII of the Civil Rights Acts of 1964.
The updated guidance comes several months after Pepsi agreed to pay $3.13 million and to provide job offers and training to settle claims that it used criminal background checks to discriminate against African American job applicants. According to the EEOC, more than 300 African Americans were adversely affected when Pepsi’s criminal background check policy disproportionately excluded black applicants from permanent jobs.