An employer’s hiring policy requires that all of its employees have a college degree, even for jobs such as receptionist and file clerk, which as recently as 2022 were filled by employees who did not have a college education. If the employer’s policy would result in a significantly disproportionate exclusion of racial minorities, adopting the requirement:

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An employer’s hiring policy requires that all of its employees have a college degree, even for jobs such as receptionist and file clerk, which as recently as 2022 were filled by employees who did not have a college education.  If the employer’s policy would result in a significantly disproportionate exclusion of racial minorities, adopting the requirement:

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Question restatement: The employer mandates that all employees have a college degree, even for roles like receptionist and file clerk, which historically did not require such education. If this policy would significantly exclude racial minorities, adopting the requirement could raise liability under Title VII. Answer option analysis:

Option 1: 'Could not subject the employer to liability under Title VII, because by hiring college graduates the employer is selecting the most qualified applicant for the job.' This is incorrect because Title VII prohibits discrimination that results from policies with a disparate impact, unless a business necessity can justify the policy. Merely claiming graduates are more qualified does not address whether the requirement is job-related or necessary; it could disproportionately exclude minority groups, triggering liability.

Option 2: 'Could subject the employer to liability under Title VII for disparate impact discrimination, unless the employer could show the requirement is job-related and consistent with business necessity.' This is correct. The key idea is that a policy mandating higher education can have a disparate impact on protected classes. Under Title VII, such policies are unlawful unless they are validated as job-related and consistent with business necessity. The employer would need to demonstrate a direct link between the college degree and essential job duties (job-relatedness) and show that the policy is necessary for business operations (business necessity).

Option 3: 'Could not subject the employer to liability under Title VII, because discrimination on the basis of educational requirements is not a prohibited form of discrimination.' This is incorrect. Title VII prohibits employment practices that discriminate on the basis of race and other protected characteristics, and educational requirements can be a vehicle for such discrimination if they disproportionately affect protected classes. The prohibition is not limited to explicit race-based discrimination but includes policies with disparate impact.

Option 4: 'Could not subject the employer to liability for disparate impact discrimination, because of the exception in Title VII for professionally developed ability tests.' This is incorrect. The legally recognized exception for professionally developed ability tests is narrow and applies to tests that meet certain criteria and demonstrate fairness and job relevance; it does not blanketly exempt all educational requirements from disparate impact analysis. Relying on such a broad exception would not be appropriate without specific testing instruments and validation data that meet the statutory standards.

In summary, Option 2 presents the correct framework: a college-degree requirement can lead to Title VII disparate impact liability unless the employer proves the requirement is job-related and consistent with business necessity. The other options either ignore disparate impact concerns or misstate the scope of Title VII protections and relevant exceptions.

BUSFIN 3500 AU2025 (2111) Final Exam Au_1_25- Requires Respondus LockDown Browser

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