Disparate Impact | Drew Capuder's Employment Law Blog

Introduction

Running background checks on job applicants is a pretty standard part of the hiring process these days. But just because something is common doesn’t mean it’s simple. Between federal laws, state regulations, and privacy concerns, employers have to walk a fine line. And for applicants, it’s important to understand your rights—especially if something from your past might show up.

Let’s break down how background checks work, what’s allowed under federal and West Virginia law, and how both sides of the hiring table can handle the process without crossing legal lines.

What Is a Background Check?

In the employment context, a background check is any review of an applicant’s history to help an employer decide whether to hire them. That can include:

Criminal history

Credit reports

Employment and education verification

Driving records

Reference checks

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May 29, 2007: In Ledbetter v. Goodyear Tire & Rubber Company, 550 U.S. 618, 128 S. Ct. 2162 (2007) (FindLaw site opinion), the United States Supreme Court, in a 5–4 decision, issued an important decision in a sex discrimination case under Title VII of the Civil Rights Act of 1964, which substantially limited the time period available to assert a claim for pay discrimination. The Supreme Court affirmed the decision of the Eleventh Circuit in Ledbetter v. Goodyear Tire and Rubber Company, Inc., 421 F.3d 1169 (11th Cir. 2005).

Ledbetter’s Claims of Sex Discrimination and Lower Pay, and the Trial Result

Ledbetter filed a charge of sex discrimination with the EEOC in 1998 and then later in the year retired. She claimed that, years earlier in her career at Goodyear, male supervisors gave her bad performance reviews compared to what men received. She claimed that Goodyear awarded raises based on those performance reviews, so that her pay raises were reduced as a result of the discriminatory performance reviews.

Ledbetter went to trial and persuaded the jury that the performance reviews, years before she filed her EEOC charge, were discriminatory based on her sex, and the jury found her rights had been violated and awarded her damages based on her lower paychecks throughout her career. The trial judge entered a “judgment” in Ledbetter’s favor based on the jury’s verdict. So Ledbetter won at trial on her sex discrimination claim under Title VII. The Eleventh Circuit Court of Appeals threw out the jury verdict and trial court judgment for Ledbetter, and entered a judgment in favor of Goodyear, based on her failure to file her EEOC charge within 180 days of when the performance reviews had been conducted. The United States Supreme Court affirmed, meaning that Goodyear won.

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