Target changes hiring policy after discrimination allegations

Target is paying more than $3.7 million to settle a lawsuit that said its hiring process, which automatically rejected people with criminal backgrounds, disproportionately kept blacks and Hispanics from getting entry-level jobs at its stores.

As part of the settlement, Target has agreed to hire outside experts to review how it deals with applicants who have criminal backgrounds.

Target says it has already made changes to its hiring process since it became aware of complaints from a job applicant more than a decade ago.

According to the lawsuit, blacks and Hispanics were harmed by the hiring system because they are arrested and incarcerated at higher rates than whites.

The suit cited "systemic discrimination in the criminal justice system."

Target had about 345,000 full-time, part-time and seasonal employees as of February.