Sixth Circuit Kaplan Decision on Credit Checks

On April 9th, the Equal Employment Opportunity Commission (EEOC) lost its case against Kaplan when the Sixth Circuit Court of Appeals ruled that using credit checks for pre-employment purposes did not discriminate against black applicants.

Instead the court found that the EEOC’s methodology for such results was flawed, containing unreliable scientific statistics. Furthermore, their results failed each of the “Daubert factors” that the court uses to determine the validity of expert testimonies. When the court ruled in favor of Kaplan, they affirmed that the company did not have a “disparate impact on Black applicants” and that credit checks are vital to the job positions that allow access to student financial loan information. The court’s decision rested in the fact that the EEOC’s lawsuit contained no valid information or admissible expertise.

To read more about the court’s decision, please visit the link below:

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