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Target Corp has agreed to pay $2

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Target Corp has agreed to pay $2.8 million to settle charges that it used assessments that discriminated based on race and sex during its hiring process, the U.S. Equal Employment Opportunity Commission. The EEOC found reasonable cause to believe that three assessment tests Target formerly used during its hiring process disproportionately screened out applicants for exempt-level professional positions based on race and sex. The EEOC said the tests violated the Civil Rights Act of 1964. The EEOC also found that an assessment performed by psychologists during Target's hiring process was a pre-employment medical examination, violating the Americans with Disabilities Act, which prohibits employers from subjecting applicants to medical tests before an offer of employment. (Click here to view the full article on WSJ.com (Links to an external site.) Links to an external site. ) QUESTIONS: 1. What is the EEOC? What is its purpose? Why was it involved in this case? 2. What is pre-employment testing? What are the benefits to the employer? What type of pre-employment testing is not legal? 3. What violations did the EEOC allege? What laws did it say Target violated? 4. What were the terms of the settlement? What was Target's alternative to settling? Why did Target settle this case? What is cost-benefit analysis? Why do individuals and companies often do a cost-benefit analysis when approaching lawsuits?