Although employers may be reluctant to hire applicants who appear "overqualified," the exclusion of overqualified applicants from consideration during the hiring process may amount to discrimination. By rejecting candidates solely on the basis that they are overqualified for a position, employers may face liability for, among other things, lost wages and damages for pain and suffering.
In Sangha v. Mackenzie Valley Land and Water Board, the Canadian Human Rights Tribunal was asked to determine whether the Mackenzie Valley Land and Water Board had discriminated against Dr. Gian Sangha when they refused to hire him for one of four Regulatory Officer positions. Although his credentials far exceeded the job requirements, Dr. Sangha applied for a position with the Board in order to gain valuable Canadian work experience, as he had had difficulty obtaining permanent employment in his field since his arrival to Canada in 1996.
The Board granted interviews to twelve candidates, including Dr. Sangha, and the interview scores he received ranked him higher than most of the other candidates. Despite these scores, the hiring committee decided not to offer a position to Dr. Sangha on the basis that he was overqualified. The committee believed he would not find the Regulatory Officer position challenging, and that he would quickly look for other opportunities.
In its February 24, 2006 decision, the Tribunal held that the Board's refusal to hire Dr. Sangha discriminated against him on the basis of national or ethnic origin. According to the Tribunal, the experience of applying for a job for which one is overqualified is disproportionately an immigrant experience, as immigrants are often excluded from the "higher rungs" of the job market due to barriers to employment at this level. Therefore, although a rule against the hiring of overqualified candidates may appear to be "neutral," since it applies equally to all overqualified candidates, such a rule has a discriminatory effect upon overqualified immigrant candidates who are forced to seek employment where their qualifications exceed the job requirements.
The Tribunal ordered the Board to revise its hiring practices and to pay damages of $9,500 for pain and suffering, but dismissed Dr. Sangha's claim for reinstatement and compensation for lost wages, stating that there had not been a "serious possibility of [Dr. Sangha] acquiring the job." On judicial review, however, the Federal Court of Canada overturned the Tribunal's finding on this issue, stating that the Tribunal erred in concluding that Dr. Sangha would not likely have acquired the job. According to the Court, there was ample evidence that he was denied the position because he was overqualified. The Court has thus remitted this matter to the Tribunal for reconsideration, and it remains to be determined whether an award of compensation for lost wages will be made in this case.
As the practice of excluding overqualified applicants from consideration during the hiring process may give rise to allegations of discrimination, it is important for employers to review their hiring policies and practices accordingly. Employers are encouraged to conduct structured interviews, and to directly inquire into the candidate's motives for applying for a job if concerns are raised that his or her credentials far exceed the job requirements.
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