Best Practices for Employers Using Tests to Screen Employees

Federal watchdog advises how employers can avoid charges of discrimination in hiring procedures

Employers often use tests and other selection procedures to screen applicants when hiring and evaluating employees for promotion. In fact, there has been an increase in employment testing due in part to post-9/11 security concerns and issues related to workplace violence, safety and liability, according to the U.S. Equal Employment Opportunity Commission (EEOC). Furthermore, the increasing use of online job applications has motivated employers to seek efficient ways to screen big applicant pools in a non-subjective way, the commission added.

With that in mind, the EEOC has issued a fact sheet on the application of federal anti-discrimination laws to employer tests and other selection procedures to screen applicants for hire and employees for promotion.

Types of Tests

Among the tools the EEOC says are available to employers are:

• Cognitive tests that assess reasoning, memory, perceptual speed and accuracy, and skills in arithmetic and reading comprehension, as well as knowledge of a particular function or job;
• Physical ability tests that measure the physical ability to perform a particular task or the strength of specific muscle groups, as well as strength and stamina in general;
• Sample job tasks (e.g., performance tests, simulations, work samples, and realistic job previews) that assess performance and aptitude on particular tasks;
• Medical inquiries and physical examinations, including psychological tests, that assess physical or mental health;
• Personality tests and integrity tests that assess the degree to which a person has certain traits or dispositions (e.g., dependability, cooperativeness, safety) or aim to predict the likelihood that a person will engage in certain conduct (e.g., theft, absenteeism);
• Criminal background checks, which provide information on arrest and conviction history;
• Credit checks, which provide information on credit and financial history;
• Performance appraisals, which reflect a supervisor’s assessment of an individual’s performance; and
• English proficiency tests to determine English fluency.

Helpful or Discriminatory?

While those tools can be useful, the EEOC cautions that “the tests can violate federal anti-discrimination laws if an employer intentionally uses them to discriminate based on race, color, sex, national origin, religion, disability or age (40 or older). Use of tests and other selection procedures also can violate the federal anti-discrimination laws if they disproportionately exclude people in a particular group by race, sex, or another covered basis, unless the employer can justify the test or procedure under the law.”

“Tests and other selection tools can be an effective means of making employment decisions, as long as they are not used to screen out individuals in a discriminatory way,” says Commission Chair Naomi C. Earp.

A number of recent EEOC enforcement actions illustrate the need for companies to examine their testing practices.

EEOC v. Ford Motor Co. and United Automobile Workers of America involved a class of African Americans who were rejected for an apprenticeship program after taking the Apprenticeship Training Selection System. The EEOC determined the ATSS had a statistically significant disparate impact by excluding African American applicants.

In EEOC v. Dial Corp., the EEOC found women were disproportionately rejected for entry-level production jobs because of a strength test. Prior to the use of the test, 46 percent of hires were women; after use of the test, only 15 percent of hires were women. Through expert testimony, the EEOC determined that the test was more difficult than the job.

Recently, the EEOC settled EEOC v. Daimler Chrysler Corp. on behalf of applicants with learning disabilities who needed reading accommodations during a pre-employment test given for hourly unskilled manufacturing jobs.

Avoiding Bias

To avoid enforcement actions, EEOC recommends:

• Employers should administer tests without regard to race, color, national origin, sex, religion, age (40 or older) or disability.
• Employers should ensure that employment tests and other selection procedures are properly validated for the positions and purposes for which they are used. The test or selection procedure must be job-related and its results appropriate for the employer’s purpose.
• If a selection procedure screens out a protected group, the employer should determine whether there is an equally effective alternative selection procedure with a less adverse impact.
• To ensure that a test or selection procedure remains predictive of success in a job, employers should keep abreast of changes in job requirements and should update the test specifications or selection procedures accordingly.
• Employers should ensure that tests and selection procedures are not adopted casually by managers who know little about these processes.

For more from the EEOC report, visit www.eeoc.gov.

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