A recent ruling by the 6th Circuit Court of Appeals, dismissed claims that an employer did not violate Title VII of the 1964 Civil Rights Act by using credit checks in their hiring practice.

The defendant in this case, Kaplan Higher Education, was accused by the Equal Employment Opportunity Commission (EEOC) that Kaplan violated Title VII of the U.S. Civil Rights Act by  screening out more African-American applicants than white applicants, which led to a disparate impact.

Though arguments have been made that the use of credit reports, when used for employment screening purposes, can have an adverse impact on a protected class, the EEOC was unable to make an argument against Kaplan for this particular case.

To read articles related to this story please see the links below:

http://www.insidecounsel.com/2014/04/11/appeals-court-ruling-rejects-eeoc-method-to-show-e

http://www.bna.com/eeocs-failure-show-n17179889528/