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Cleveland, OH, United States (AHN) – Kaplan Higher Education Corp. is in the center of an Equal Employment Opportunity Commission lawsuit. Kaplan, a division of the Washington Post Co., is facing allegations it rejected job applicants based on credit history, a decision that discriminated by race.

The suit was filed Tuesday in federal court in Cleveland. According to court documents, since at least 2008 Kaplan’s hiring practices violated the Civil Rights Act of 1964.

The suit seeks an injunction against the practice, lost wages and benefits, and employment offers for those who weren’t hired.

“This practice has an unlawful discriminatory impact because of race and is neither job-related nor justified by business necessity,” the EEOC said in a statement.

With 75 campuses around the U.S., the Chicago-based school has about 110,000 students, with nearly 70,000 students taking online classes. In 2009, 87 percent of its revenue came from federal student aid.

In a statement released, Kaplan said it was proud of its diverse workforce. The company said it conducts background checks on all prospective employees and reviews credit histories for those who handle financial matters.

Several states have banned or restricted the use of credit histories in hiring.

Kaplan spokeswoman Michele Pore said Kaplan would not acknowledge a violation of civil rights law and would not comment further.

Kaplan is also facing a separate investigation by Florida’s attorney general into its recruiting practices at for-profit colleges.

Over the past decade Kaplan has gone from being a leading provider of test-preparation materials and classes to a leading player in the ever-expanding for-profit higher education business.

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