EEOC would review employer hiring tests and grant legal safe harbors

What does this do?

HR 4050 creates a voluntary program at the Equal Employment Opportunity Commission (EEOC) where employers submit hiring tests and screening tools for agency review. If the EEOC determines a test is connected to job performance and legally justified, the employer receives a safe harbor that can be used as a legal defense in lawsuits. Anything an employer shares during the review process cannot be used against them in court or in a future government enforcement action.

Who does it affect?

Employers of all sizes can participate, though those with more than 100 employees would pay a fee for the review. Job seekers are also affected, since the program could influence how companies decide who gets interviewed or hired.

Why does it matter?

The EEOC would take on new responsibilities and increased workload to administer this program. Even when a test screens out protected groups at higher rates, employers may still submit it for review as long as they disclose that information.

What does it cost, and who pays?

• Fee required for employers over 100 staff
• Smaller employers face no fee
• Fee amount not specified

Where does it stand?