Human Resource Selection 9th Edition by Marianne Jennings

Exercise 27

The city administration of Columbus, Ohio, was frustrated because of problems with water bills and tenants. If the city set up a direct billing relationship with the tenants, their landlord was unaware that there were delinquent water bills. Tenants would then move out and leave the landlord with the water bills, bills the landlord refused to pay because they were not on the landlord's account. The city developed a process whereby it would contract directly with the tenant, but through a joint agreement would notify the landlord when the tenant was delinquent. The city could then refuse to turn the water on for any property where there was a delinquency from a previous tenant because the landlord was jointly liable. Hazel Golden, a tenant, tried to get direct billing for a home she rented but was denied because the city required the landlord's joint signature. Golden filed suit alleging a violation of the ECOA because the city's policy has the effect of rejecting a higher proportion of female and minority applicants for water service than other applicants. Golden's expert witness testified that women and minorities are underrepresented in the population of homeowners in the city. Because the policy permits only homeowners to directly contract for water service, the policy has a disparate impact on anyone who is underrepresented among homeowners. Is the city's policy a violation of the ECOA? [ Golden v City of Columbus, 404 F.3d 950 (6th Cir. 2005)]