Final answer:
Employment tests and screening procedures must be directly related to job performance to prevent discrimination. Academic records and work histories are basic screens, while other indicators from the educational institutions and personal references may also be used. Legal precedents require differential treatment to be proved for discrimination cases based on pay.
Step-by-step explanation:
The case Albemarle Paper Co. v. Moody focuses on the legal requirement for employers to prove that the employment tests or other screening procedures they use need to be directly related to job performance. This is connected to the concept of asymmetrical information in the labor market, where employers have limited knowledge regarding the potential performance of an employee. This gap in information can lead to discriminatory practices, such as statistical discrimination, where employers may make biased judgments based on stereotypes, rather than individual merit.
To prevent such discrimination and ensure fair employment practices, it's crucial that any criteria used by employers for hiring or promotion - like academic records, work history, or performance on specific skills tests - are closely linked to actual job responsibilities and requirements. Furthermore, going beyond these basic screening tools, employers can look to trade schools and colleges to pre-screen candidates, considering indicators such as awards, a high grade point average, and personal references which may reflect on a candidate's work ethic, perseverance, and other professional attributes.
Ensuring Fair Employment Practices
Additionally, legal precedents have established that to make a case for discrimination based on pay, an individual must prove differential treatment as compared to another employee of a different race in a similar position and with comparable education and expertise.