An HR director decided not to interview a qualified applicant because of personal knowledge that...

The intent here was toavoid increased health insurance costs, which would fall underexperience rating— a method insurers use to set premiums based on historical claims. However, making hiring decisions based onfamily medical historyviolates theGenetic Information Nondiscrimination Act (GINA).

Extract from HRCI-aligned HR knowledge: In theEmployee Relations and Engagementdomain, understanding “employment law compliance” andrisk mitigation strategiesis essential. While the director may have been trying to manage insurance costs, this rationale violatesfederal employment law, demonstrating poor risk management.