Young & Rich, Inc. is a retail clothing chain that markets to the higher end of

Question

Young & Rich, Inc. is a retail clothing chain that markets to the higher end of the young adult market, with a "look" that's intended as a crossover between "prep school" and "active adventurous." Image is very important to Young & Rich (Y&R), and a great deal of money and attention has been spent over the years marketing Y&R's distinctive image. For sales associates in its retail operations, the company seeks young adults (ages 16-early 30s) who are "good looking," "clean cut" and have the "All-American-boy-or-girl-next-door" look. The company claims that this is driven by "business necessity," in that Y&R's customers are drawn to stores where the staff have the "look" they've come to associate with Y&R. The company will not hire anyone with a drug conviction or who is currently in drug rehab. Y&R also will not hire anyone who is a member of the Communist party. The company advertises its retail sales associate positions widely and hires from all racial and ethnic groups, men and women. Virtually all of the sales associates at Y&R have "the Y&R look." Of those who applied for available positions last year, 45% of white applicants were hired, 37% of African American applicants were hired, 40% of Hispanic applicants were hired, 100% of Native American applicants were hired (only two applied), and 49% of Asian applicants were hired. Though Y&R hires more women than men for its retail sales operation, the percentage of applicants hired is approximately the same for men and women. In looking at the composition of the retail store staff, however, it's apparent that virtually all of the African American sales associates are light-skinned. Desmonda, a dark-skinned African American, was denied a sales associate position at Y&R despite having retail sales background. Caroline, a Hispanic woman, was told she did not have "the look we are looking for" when she applied for a sales associate position. Chelsea, a white woman who spent 6 months in drug rehab last year was rejected for a job at Y&R. Ted, a white university student who is a member of the Communist Party, was denied employment with Y&R for that reason. About 25% of those hired as retail associates at Y&R were encouraged to apply when approached by a Y&R representative. Traci is one such employee. She was with friends at the local mall one day (where there is also an Y&R store) and was approached, in the food court by a Y&R manager who encouraged her to apply for a sales associate position that had just opened up at the Y&R store. Traci buys Y&R clothing and likes "the look," so she applied for the position that day and was hired. This same system is used to hire sales associates from all races and ethnic groups, men and women. Is there a problem with this hiring practice? Why or why not?

Explanation / Answer

The hiring practice at Y&R is not inclusive and it employs prohibited practices. It is illegal for them to have a hiring policy with preferences for people with certain physical and ethnic attributes. Y& R is engaging in discouraging and rejecting applicants because of their race, color, age and gender. They are hiring more women, and of them, they have policy defining the physical, ethnic and social attributes.

Their refusal to hire Desmonda despite her retail sales back ground is a violation of equal opportunity laws. Similarly in case of Caroline, the Hispanic, the companies discriminated against her because of her looks that were attributable to her ethnicity. They encouraged people with desirable physical attributes, while rejecting people with relevant experience and backgrounds. Clearly these are prohibitive hiring practices and a serious case for the litigation against discrimination.

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