Personality tests are common in modern hiring, but legality depends on how—and when—they’re used. U.S. employers face strict limits under the EEOC, ADA, and state privacy laws that define what’s fair, job-related, and nondiscriminatory.
At Jackson Advisory Group, we guide business owners through compliant testing frameworks that balance accurate candidate insights with full legal protection. Our approach aligns real-world hiring needs with evidence-based validation methods, not unverified pop psychology.
This article outlines the key laws, risk areas, and compliance steps you must know before adding any personality assessment to your hiring process—plus practical guidance to keep your company both competitive and compliant.
Legality of Using Personality Tests in Hiring
Personality tests can help screen candidates, but you need to use them carefully to follow the law. Make sure the test matches the job, is validated, and is applied the same way to every candidate.
Job-Relatedness and Business Necessity
Show that a pre-employment personality test measures traits that matter for the specific job. Courts look for a clear link between test traits and job tasks. For example, using a test that measures teamwork fits a customer-service role but not a solitary lab technician role.
If a test screens out a protected group, you must prove it is a business necessity. Document why the trait predicts job performance and why no less-discriminatory method works. Keep job analyses, selection criteria, and records of how test scores relate to job outcomes.
Validation and Reliability of Tests
Use validated, reliable personality assessments when screening applicants. Validation shows the test predicts job performance or other work outcomes. Reliability means the test gives consistent results over time and across groups.
Work with vendors that provide validation studies or run your own. Prefer tests with peer-reviewed research, clear scoring rules, and documented norms. Keep validation reports, technical manuals, and evidence that links test scores to hiring outcomes.
Consistent Application Across Candidates
Apply personality tests the same way for all applicants to avoid discrimination claims. Use the same test, instructions, timing, and scoring for every candidate in the same role. Train hiring staff and document your process.
If you use outside vendors, ensure contracts require consistent administration and data security. Track who took the test, scores used in decisions, and how those scores affected hiring. Consistency and records help you defend your hiring decisions.
Federal Laws and Guidelines Impacting Pre-Employment Testing
Personality tests must follow rules that protect workers from discrimination and unfair medical inquiries. Know which laws limit what questions you can ask and when you can ask them.
Americans with Disabilities Act (ADA) Considerations
The ADA stops employers from using tests that screen out people with disabilities unless the test is job-related and necessary. You cannot give medical or disability-related exams before making a conditional job offer.
If a personality test asks about mental health or functioning, treat it like a medical inquiry and delay it until after a conditional offer.
After a conditional offer, you may require testing tied to job safety or essential duties. You must provide reasonable accommodations for applicants with disabilities during testing. Keep documentation showing the test measures actual job needs and that no less-discriminatory alternative exists.
Title VII and Anti-Discrimination Protections
Title VII bans discrimination based on race, color, religion, sex, and national origin. Your personality test must not disproportionately screen out a protected group unless the test is proven valid for the job. Use validated scoring and standard administration for all candidates to reduce risk.
If a test shows an adverse impact, you must show that it is job-related and consistent with business necessity. Keep validation studies, test manuals, and evidence of consistent use. Treat test results the same for all applicants to avoid claims of biased implementation.
Age Discrimination in Employment Act (ADEA) Compliance
The ADEA protects applicants 40 and older from age-based discrimination. Your personality assessment must not include items or norms that disadvantage older applicants. Avoid age-referenced questions or scoring that relies on age-based norms unless you can show job relevance.
If test content or cutoff scores exclude older applicants, you must prove the test is essential for safe or efficient job performance. Document validation work and consider alternative measures that reduce age-related disparities while still predicting job success.
EEOC Guidance and Enforcement
The EEOC enforces federal anti-discrimination laws and issues guidance on pre-employment testing. Employers must validate tests, monitor adverse impact, and keep records showing legal compliance. The EEOC warns against medical inquiries before conditional offers and emphasizes consistent test use.
Follow EEOC technical guidance like the Uniform Guidelines on Employee Selection Procedures for validation, documentation, and recordkeeping. If the EEOC investigates, clear policies, validation studies, and uniform administration help defend your testing program.
EEOC Rules on Personality Testing
According to the U.S. Equal Employment Opportunity Commission (EEOC), employment tests—including personality assessments—are lawful only when they are job-related and consistent with business necessity.
The EEOC’s guidance stresses validation, equal administration, and clear links between test traits and essential job duties.
Violations have led to multimillion-dollar settlements where tests screened out protected groups. Employers should follow the EEOC’s Uniform Guidelines on Employee Selection Procedures to document fairness and job relevance.
Common Legal Risks in Administering Personality Tests
Personality tests can affect who you hire, who you reject, and what private data you collect. Watch for legal claims related to fairness, bias, and how you store or share test results.
Disparate Impact and Disparate Treatment
Disparate impact happens when a neutral test disproportionately screens out a protected group, even if unintentional. If your test lowers hiring rates for a protected class, you can face a legal challenge unless you show the test is job-related and necessary.
Disparate treatment means treating some candidates differently because of a protected trait. Using different tests, scoring, or cutoffs for different groups can trigger claims of intentional discrimination.
Keep a consistent testing process, document why you chose the test, and keep validation studies showing the test predicts job performance to reduce risk.
Adverse Impact and Bias Concerns
Adverse impact focuses on measurable harm to specific groups. Run statistical analyses (like the four-fifths rule) to detect adverse impact before using a personality assessment widely. If you find an adverse impact, adjust or replace the test, or add alternative selection tools measuring job-relevant skills.
Bias can come from poor test design, culturally loaded questions, or automated scoring. Use validated instruments designed for employment decisions. Keep validation reports, update tests regularly, and train staff to interpret results to limit bias and reduce liability.
Privacy and Confidentiality of Results
Personality test data can include sensitive information. Treat results as confidential and limit access to those making hiring decisions. Share scores only on a need-to-know basis and avoid storing unnecessary data.
Follow laws on medical and disability-related questions — the ADA limits pre-offer medical inquiries. Use secure storage, clear retention policies, and get consent when appropriate. If you use third-party vendors, require contractual protections for confidentiality and data security.
Legal Requirements for Test Validation and Fairness
Make sure your hiring tests measure job-relevant skills and do not unfairly screen out protected groups. Key areas include federal guidance, ways to validate tests, and ongoing professional review.
Uniform Guidelines on Employee Selection Procedures (UGESP)
The Uniform Guidelines on Employee Selection Procedures (UGESP) are the main federal rules for using tests.
They explain how to avoid unlawful discrimination under Title VII and refer to 29 C.F.R. § 1607.1. UGESP tells you when a selection procedure may create an adverse impact and what you must show to defend it.
UGESP requires that selection tools be job-related and consistent with business necessity when they disproportionately affect a protected group. Document job analysis, the link between test content and job tasks, and the validation method used.
The Griggs v. Duke Power decision underpins these rules: the court held that neutral tests lacking a clear link to job performance can be unlawful if they have a disparate impact.
Keep records of test development, scoring rules, and hiring outcomes. These documents help you respond to complaints, EEOC reviews, or litigation. Use the UGESP framework to shape your test policy.
Test Validation Methods
Validate tests using methods UGESP recognizes: content, criterion-related, and construct validation. Content validation shows the test items match actual job tasks. Use job analysis to list tasks, then map test items to those tasks.
Criterion-related validation shows that test scores predict job performance. Run concurrent or predictive studies and report correlation coefficients and sample sizes. Construct validation demonstrates that the test measures a psychological trait tied to performance, backed by research evidence.
Track adverse impact metrics (like the 4/5ths rule) and run subgroup analyses. If a test shows adverse impact, document business necessity and consider alternative, less-disparate tools. Maintain validity studies, sample descriptions, and statistical reports as part of your legal defense.
Professional Development and Review
Qualified professionals must develop and review selection procedures. The law expects trained test developers, psychometricians, or HR experts to design and validate assessments. Relying on off-the-shelf tests without review increases legal risk.
Set a review schedule. Revalidate tests when job duties change, when you update scoring, or every few years. Train hiring managers on proper test administration, consistent scoring, and confidentiality. Keep written policies on test use, accommodations under the ADA, and data retention.
Document the credentials of professionals who create or review your tests. This strengthens your position if agencies or courts question your process.
Types of Pre-Employment Tests and Legal Differences
You will see many kinds of hiring tests. Each type has different legal rules about timing, job relevance, and privacy.
Personality vs. Skills and Aptitude Tests
Personality tests measure traits like teamwork, agreeableness, and stress tolerance. Employers use them to predict fit with company culture or job demands. These tests must be job-related and validated if they screen out protected groups.
You should be notified if a test uses algorithms that could affect fairness. Skills and aptitude tests check specific abilities: typing speed, coding, math, or problem-solving.
These are usually easier to defend legally because they link directly to job tasks. Employers must still avoid questions that reveal protected traits. Often, skills tests are given earlier in hiring than medical exams.
If a test is high-stakes for hiring, the employer should document why the test matters for the role and how it was validated. You can request reasonable accommodations if a test format creates barriers.
Integrity and Psychological Assessments
Integrity tests look for honesty, rule-following, and theft risk. Employers use paper or online questionnaires and sometimes situational judgment items. Courts allow integrity testing if the employer shows a clear tie between test content and job duties, such as handling cash or confidential data.
Psychological tests may probe mental health, personality disorders, or emotional stability. The ADA limits employers from asking about medical conditions or disabilities before a conditional offer.
If a psychological test could reveal a disability, employers usually must wait until after an offer and then handle any disability issues via accommodation rules.
You should be told how results affect hiring. Employers must guard test data and treat it as confidential medical or personnel information when appropriate.
Medical Exams, Physical, and Strength Tests
Medical examinations and strength tests assess your physical ability to do job tasks safely. The ADA generally bars medical questions before a conditional job offer. After an offer, an employer can require a medical exam or fitness test if it is required for all entering employees in the same job category.
Physical and strength tests must reflect essential job functions. For example, a warehouse job may require lifting tests. Employers must provide reasonable accommodations if a disability prevents you from passing but you can still perform the job with adjustments.
Health data from exams is sensitive. Employers must keep it separate from general personnel files and limit access to those who need it.
Background and Credit Checks
Background checks and criminal history screenings help employers assess trust and safety risks.
Laws differ by state and city regarding when and how employers can use criminal records. Some places restrict the use of arrests not leading to conviction or require individualized assessments before denying employment.
Credit checks involve financial information and face special legal limits in many areas. Employers usually must get written consent and may need to explain how credit history relates to the job, especially for roles with financial duties.
If an employer plans to take negative action based on a background or credit report, federal rules (FCRA) require a pre-adverse notice, a copy of the report, and a chance for you to dispute errors before final action.
State and Local Regulations Affecting Personality Testing
State and local rules can change how employers use personality tests in hiring. Some laws focus on bias and audits, while others protect people with disabilities and limit certain test types.
Notable State Laws and City Ordinances
Many states and cities set extra rules beyond federal law. New York City’s Local Law 144 requires notice and a bias audit for any employer using an automated employment decision tool, which can include personality tests if they use algorithms.
Employers must publish a summary of the audit results and keep records for public inspection.
Some states ban certain written tests or limit testing that screens for traits tied to protected classes. Always check state statutes and local ordinances before using any test, as small differences—like required disclosures or record-keeping periods—can affect compliance.
Automated Employment Decision Tools
Automated tools can score responses, flag traits, or rank candidates. If a personality test uses algorithms or machine learning, many areas treat it as an automated employment decision tool and require special handling.
Employers must run bias audits, document test validity, and provide candidate notice where such rules exist. Even if a software vendor conducts the testing, you remain responsible. Keep vendor agreements, audit reports, and technical details to show how the tool works and why it is job-related.
Reasonable Accommodations for Disabilities
The Americans with Disabilities Act requires reasonable accommodations when tests screen for disabilities or limit access. If an applicant needs extra time, alternative formats, or a quiet setting, you must provide reasonable accommodations unless it causes undue hardship.
Avoid wording or items that indirectly measure medical conditions. When a test raises disability concerns, coordinate with the candidate and document your accommodation offers and decisions.
Keeping Personality Testing Legal and Effective
Personality assessments can sharpen hiring decisions, but only when they are validated, job-specific, and administered consistently. Federal and state laws make fairness and documentation non-negotiable. Treat every test like a selection instrument that must withstand legal scrutiny.
At Jackson Advisory Group, we work with business owners to design compliant assessment systems—aligning hiring accuracy with EEOC, ADA, and emerging AI regulations. Our operator-driven model ensures your testing improves results without adding legal risk.
Ready to audit your current assessments or plan a compliant rollout? Book a 15-minute strategy call to protect your company and elevate how you hire.
Frequently Asked Questions
You will find concrete, job-focused rules about test validation, non-discrimination, and privacy. The answers explain what you must check before using personality tests and what can happen if tests break the law.
What legal considerations must employers take into account when using personality tests in the hiring process?
Employers must ensure the test measures traits relevant to the job and validate the test statistically. Follow federal, state, and local laws on discrimination, privacy, and automated decision tools. Keep records showing how the test was chosen and how results influence hiring decisions.
Can personality tests during recruitment be considered discriminatory under current employment laws?
Yes, if the test has a disparate impact on a protected group. Employers must show the test is job-related and consistent with business necessity. If not, legal challenges and claims may result.
What guidelines do employers have to follow to ensure their use of personality assessments complies with the EEOC?
Use scientifically validated tests tied to job duties. Keep documentation of validation and make sure the test is accessible to applicants with disabilities. Monitor outcomes for adverse impact and adjust as needed. Review vendor methods and require bias audits.
Are there specific regulations in California that govern the use of personality tests for hiring?
California law emphasizes privacy and anti-discrimination protections. Employers must avoid questions about medical conditions unless allowed under the ADA with accommodation. Local rules may add notice and audit requirements for automated tools. Check both state and local rules before using a test.
How can personality tests in the workplace impact existing employees and their rights?
When using personality tests for promotions or discipline, treat current employees like applicants under the law. Protect test data, notify employees about its use, and store information securely to comply with privacy laws.
What are the legal consequences for companies if personality tests used in hiring are deemed invalid?
You may face discrimination lawsuits, regulatory enforcement, or be required to stop using the test. Courts or regulators can make you restore opportunities to affected applicants and pay damages or fines.
You might also lose reputation and experience hiring delays while redesigning selection tools. To limit risk, remove or fix tests that fail validation and involve legal counsel.
