In the world of business, size doesn’t always guarantee perfection. Even giant corporations such as Walmart, with their immense resources and global reach, can make significant mistakes that impact their reputation and bottom line. A recent lawsuit against Walmart serves as a reminder that no company is immune to missteps, especially regarding employment practices. As a business owner, it’s crucial to learn from these errors and prioritize compliance with employment laws. One way to do this is by partnering with a professional employer organization (PEO).
Walmart’s Misstep: The EEOC Lawsuit
The U.S. Equal Employment Opportunity Commission (EEOC) recently took Walmart to federal court, alleging that the retail company terminated employees with disabilities due to their inability to pass an employment test. The lawsuit claimed that Walmart used an unlawful qualifications standard, known as the Pathways Graduation Assessment, and failed to provide reasonable accommodations for disabled workers, as required by the Americans with Disabilities Act (ADA).
Shay Ahlborn, GMS’ HR Account Manager, stated, “Compliance with the ADA is imperative within organizations. Failure to comply with the ADA can result in legal consequences, fines, and lawsuits. However, GMS is here to assist employers with ADA and other employment law compliance through onsite HR management with extensive experience in state and federal employment laws.”
The Pathways Graduation Assessment: A Problematic Test
Walmart’s Pathways Graduation Assessment was a computer-based test designed to measure employees’ knowledge of various job-related aspects, including customer service, inventory management, retail fundamentals, and merchandising. If employees failed the test after three attempts, they faced termination.
Lessons For Business Owners
The EEOC’s lawsuit contended that this assessment was not job-related and did not meet the criteria of business necessity for certain positions. The agency argued that the test effectively screened out or tended to screen out individuals with disabilities, violating the ADA. This case highlights a crucial lesson for all businesses: while performance standards are essential, they must be fair, job-related, and not discriminate against any protected group, including individuals with disabilities.
Key Takeaways For Business Owners
- Prioritize compliance: Compliance with employment laws, especially those related to disabilities and equal opportunity, should be at the forefront of your business practices. Take proactive steps to ensure your hiring and employment assessments align with ADA requirements.
- Provide reasonable accommodations: The ADA mandates that employers provide reasonable accommodations to individuals with disabilities. Be ready to accommodate employees during tests or other evaluations, such as offering extra time or switching to a different format.
- Communicate openly: Inform job applicants and employees of their right to request reasonable accommodations during assessments. Establish an interactive process to address these requests promptly and efficiently.
- Choose fair assessments: Ensure that any pre-employment tests or assessments are fair, job-related, and unbiased. Seek legal guidance if needed to develop assessments that comply with employment laws.
- Mitigate risks: Recognize that employment-related lawsuits can have substantial financial and reputational consequences. Taking proactive measures to prevent discrimination and wrongful termination is not only ethical but also financially prudent.
- Consider partnering with a PEO: To navigate the complexities of employment law, many businesses choose to partner with a professional employer organization (PEO). A PEO can provide expertise in HR compliance, assist with reasonable accommodations, and help manage employee assessments effectively.
Have You Considered Partnering With A PEO?
Walmart’s lawsuit serves as a reminder that even the largest corporations can stumble regarding employment practices. As a business owner, you can learn from their mistakes and build a workplace that values diversity, compliance, and fairness. Partnering with a PEO like GMS can be a wise decision, offering the expertise needed to navigate the intricate landscape of employment law while ensuring that your business thrives and avoids costly legal battles. By prioritizing compliance and inclusivity, you can create a workplace where employees of all backgrounds and abilities can succeed and flourish. Contact us today to learn more!