Equal Emp't Opportunity Comm'n v. Peoplemark, Inc., No. 11-2582 (6th Cir. 2013)
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Peoplemark is a temporary-employment agency that used an application form that asked applicants whether they had a felony record and conducted an independent investigation into the criminal records of all applicants. Scott, an African American with a felony conviction, submitted an application and was not referred for employment. She filed a charge of discrimination with the EEOC. Peoplemark’s attorney stated that clients knew of the policy and some had told Peoplemark not to refer felons. A review of more than 18,000 documents showed that Peoplemark had referred felons to job opportunities. The EEOC sent a letter indicating that Peoplemark had violated Title VII, 42 U.S.C. 2000e-2(A), based on its conclusion that a companywide policy of rejecting felon applicants had a disparate impact on African Americans. Attempts to conciliate failed. The EEOC filed suit on behalf of Scott and a class of similarly situated persons. Additional discovery revealed that there was no company policy and the case was dismissed. The district court awarded Peoplemark $751,942.48 in fees and costs, including attorney’s fees from October 1, 2009, finding that as of that date the claim was unreasonable. The award also included Peoplemark’s expert fees. The Sixth Circuit affirmed the award.
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