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Employer Flunks the Test with Pre-Employment Testing
08/16/2012
By: Donald Berner

The use of pre-employment testing by employers has become more common in recent times. In most cases, the testing is conducted by outside vendors offering these types of services to multiple groups of employers. While these tests seem to be a good idea to most employers, it is important to make sure they pass muster with the various administrative agencies at the federal and state level.

In a recent example of a test gone wrong, the OFCCP took issue with an employer's written testing program. The test had an adverse impact on minority applicants and failed to meet the EEOC's Uniform Guidelines on Employee Selection Procedures.  In this recent case, the OFCCP reached a $550,000 settlement with the employer. Click here for the OFCCP press release.

While having the OFCCP involved might suggest this is only an issue for written tests and government contractors, don't be misled. This is only an OFCCP issue because the problem was uncovered by an OFCCP audit of the employer. The EEOC's requirements in this area apply to all employers. In addition, the selection guidelines apply to all types of pre-employment testing, ranging from written testing to skills testing to strength-and-agility testing.

If your company conducts these types of tests, it is important to ensure there is not an adverse impact on a specific class of individuals. If there is an adverse impact, the employer can still defend the testing measure if the employer can show the test is an accurate predictor of a candidate's ability to perform a job. This is where      Continue Reading...

 
Cost to Comply with Proposed Affirmative Action Regulations May Be Billions (Yes, That’s Billions with a B)
08/01/2012
By: Boyd Byers

Federal government contractors’ costs to comply with proposed affirmative action regulations for individuals with disabilities could total $5.9 billion dollars in the first year, with recurring annual costs of $2.6 billion, according to a new study by Applied Economic Strategies.  These projected first-year costs are 200 times higher than the government’s estimate of $29.5 million.  (We all know the federal government has never underestimated the cost of anything before!) 

The AES report criticizes OFCCP’s estimates for missing and underestimating numerous costs to contractors.  For example, OFCCP failed to account for time that contractors would have to spend to read and understand the new regulations.  Assuming four hours of work per contractor (and, boy, will those four hours be fun), AES estimated that cost alone at $69.7 million—more than double the OFCCP's entire estimate.  The AES projections also accounted for contractors’ costs to modify existing processes, forms, and information systems to comply with proposed data collection rules.  The full report, available here, monetizes the costs of many other aspects of the proposed regulations, including the self-identification, written rejection letter, annual job qualification review, annual disability survey, and various outreach requirements.
 
 


Authors
Don Berner Image
Don Berner, the Labor Law, OSHA, & Immigration Law Guy
Boyd Byers Image
Boyd Byers, the General Employment Law Guy
Jason Lacey Image
Jason Lacey, the Employee Benefits Guy
Additional Sources
Subscribe to Kansas Employment Law Letter Image
Subscribe to Kansas Legislative Insights Image