Pepsi Agrees to Pay $3.13 Million to Resolve EEOC Finding of Background-Check Bias

ST. PAUL, Minn.—Pepsi Beverages has agreed to pay $3.13 million and change its background-check policy to resolve allegations that it had discriminated against African Americans in its hiring practices, the Equal Employment Opportunity Commission announced Jan. 11.

The conciliation agreement with EEOC also requires Pepsi to hire all of the more than 300 African Americans identified by EEOC as adversely affected by the company’s hiring policy if they choose to again apply for work.

Julie Schmid, acting director of EEOC’s Minneapolis office, told Bloomberg BNA that the agreement should alert employers that their background check policies should not be overbroad. ...