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Dear Kathleen:
I need to hire, but to qualify for HUD zone, I need to hire people who live in two specific towns near my business. Can I run an ad saying that only those who live in these two cities need apply? Am I opening myself up for lawsuits?
Thanks,
Todd A.
Dear Todd:
Well, it’s a little complicated, but here’s your answer. I wouldn’t specify an area requirement in an advertisement to the world, but you can screen for candidates who are most advantageous to your business model as long as your hiring practices do not discriminate against a protected class. In the end, you may not have a problem, but it’s always good to err on the side of caution.
Here’s the issue. If the area you are targeting is primarily made up of Caucasians and very few African Americans, you could be accused of “disparate treatment” or “disparate impact” because your business practices may adversely impact members of a particular minority group. You can’t discriminate based on where a person lives because where they live may indicate their national origin and/or racial background, or a number of other factors.
Consider where you advertise. There are two ways to look at it. If you advertise in local papers, you may get you candidates from the areas that is most advantageous to your HUD status. However, if you advertise on Monster.com, for example, this ad will definitely cast a wider net and get you more qualified candidates. If you are hiring for entry-level positions or you think it may be important, you might want to include something about public transportation and mention your area.
In the end, you have to remember to hire based on the person’s qualifications for the job. As always, check with you employment attorney for legal advice.
Good luck!
Be sure to check out Kathleen Weiss’ blog on Human Resource Issues.
Disclaimer: Information provided is not intended to be and should not be considered legal advice. As always, please consult your attorney regarding your company’s legal matters.
