Target Corp has agreed to pay $2

1. EEOC is an agency in the United States, that is, the U.S Equal Employment Opportunity Commission. It was initiated to be responsible towards the enforcement of the federal laws of the country. Its purpose is to make sure that employment opportunities of the fellow citizens of the country should not be discriminated on the basis of sex,race or disabilities of the person applying for the job. It was involved in the above case because there was a clear case of violation of the federal law as there was discimination on the basis of race and sex during the employment process.

2. The pre employment testing refers to the various test conducted by the hiring agency to get a better knowledge of the people they will be hiring for job. These type of testing will be done prior to the interview process so that the employing firm can acquire or get hold of few documents concerning the employees qualification and experience.

Benefits to the employer from conducting these tests can be like speeding up the employment or hiring process as they will have to select the final employee from a few pre selected candidates. Through these they can also get to know about the skills of the candidates and enhance the quality of interviews.

Pre employment tests which test the physical capabilities of the candidates prior to the final selection are considered illegal as the laws of the country does not permit medical tests of the applying candidates as a criteria for pre selection.

3. The violations alleged by the EEOC against the company were i) that the company discriminated the candidates on the basis of race and sex before the selection of the candidates ii) the company conducted psychological tests of the candidates before the final selection which are against the federal laws of the land.

The laws violated by the company include i) Civil Rights Act of 1964 ii) Disabilities Act

4. The terms of agreement was that the Target Corp will pay $ 2.8 million to settle the charges against it and also assured the EEOC that it will discontinue the practices that violate the federal laws.

The alternative that Target had to this case other than settling was to engage in prolonged litigation. While analysing the cost benefit analysis, it seems to be more profitable to settle the case with EEOC than go for litigation as the charges levied against the company were of serious kind. During the litigation process it could have been possible that the amount of fine plus the cost of going for litigation could have been much higher. Chnaces are also there that the there could be more serious punishments inflicted on them for the violation of the laws of the land.