EEOC v. Freeman
2013 U.S. Dist. LEXIS 112368
D. Maryland2013Background
- Freeman began background checks in 2001 to assess trustworthiness and reduce liability and loss.
- Checks varied by job type: general roles used criminal history; credit checks added for credit-sensitive positions; officers added education verification.
- Checks were typically performed after the offer but before starting work; PSA conducted checks for criminal history and credit histories from TransUnion.
- Freeman limited credit checks to convictions within seven years; employees with certain convictions were generally disqualified, depending on offense type.
- EEOC alleges a nationwide disparate impact on African-Americans and males, but Freeman challenges the data reliability and causal linkage to a single employment practice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether EEOC proved disparate impact with reliable data | EEOC relies on Murphy/Huebner statistics showing impact on protected classes | Data are unreliable, time-barred, and not tied to a specific practice | Summary judgment for Freeman; no proven disparate impact from a specific practice |
| Whether Murphy/Huebner expert testimony was admissible | Experts provide necessary statistical support for disparate impact | Data errors, time periods, and methodology render them unreliable and untimely | Murphy/Huebner testimony excluded; prejudicial to EEOC's case |
| Whether national statistics alone can prove disparate impact | National race/gender disparities support disparate impact | National stats do not reflect the relevant applicant pool or the specific hiring practices | Insufficient to prove disparate impact |
| Whether EEOC identified a specific employment practice causing impact | General credit/criminal checks as a policy caused impact | Policy is multi-faceted; EEOC failed to isolate the implicated practice | EEOC failed to isolate a specific practice; Freeman entitled to summary judgment |
Key Cases Cited
- Watson v. Fort Worth Bank & Trust, 487 U.S. 977 (1988) (high standard of proof for disparate impact statistics)
- Wards Cove Packing Co. v. Atonio, 490 U.S. 642 (1989) (proper comparison between qualified pool and labor market)
- Garcia v. Spun Steak Co., 998 F.2d 1480 (9th Cir.1993) (burden to prove discriminatory impact; not mere statistical inference)
- Daubert v. Merrell Dow Pharmaceuticals, 509 U.S. 579 (1993) (reliability and methodology requirements for expert testimony)
- EEOC v. Sears, Roebuck & Co., 839 F.2d 302 (7th Cir.1988) (reliance on statistics and rebuttal standards in disparate impact)
- King v. General Electric Co., 960 F.2d 617 (7th Cir.1992) (background evidence limits and time-period considerations)