You posted a job. You got 200 resumes. Now you're staring at them thinking: "How do I review these fairly? Can I just filter out people without degrees? And what do I do with the 195 people I don't hire?"

Most founders think: "I'll skim resumes for keywords, auto-reject anyone missing requirements, and delete the rejects when we're done hiring." What they don't realize: how you handle resumes determines whether you face discrimination lawsuits, violate federal record retention laws, or accidentally filter out your best candidates because of unconscious bias.

Founders who auto-reject based on degree requirements face disparate impact discrimination claims. Founders who delete rejected resumes before the 1-year minimum retention period face EEOC penalties and adverse inference in lawsuits. Founders who don't address hiring bias build homogenous teams that underperform and struggle to scale.

Here's how to review resumes fairly, what you can and can't automatically reject, and how long you must keep every application (yes, even the bad ones).

Blind resume review = removing identifying information (name, schools, addresses, graduation dates) before evaluating candidates

The research is clear:

Resumes with "white-sounding" names got nearly 50 percent more callbacks than those with "black-sounding" names

A 2014 study found that managers of both sexes were twice as likely to hire a man as a woman

Using conventional résumé screening, about a fifth of applicants who were not white, male, able-bodied people from elite schools made it to a first-round interview. Using blind auditions, 60 percent did

What gets removed in blind review:

Personal identifying information is redacted or removed. This might include names, addresses, schools attended, and even dates of graduation

Why this matters:

Without this info, you focus on: Skills, experience, achievements, work samples

Example - 15-person startup, California:

"We decided to ask job applicants to not include their name, address, college name, or graduation date on their resume"

Then: After receiving resumes for a position, assign each candidate a number and refer to applicants by their number until people are brought in for interviews

Low-tech option: Use a Sharpie to redact names, schools, addresses before printing/reviewing

Mid-tech option: Copy resume text into spreadsheet, filter out identifying info, assign candidate numbers

High-tech option: Use software like Blendoor, GapJumpers, or ATS with built-in blind review

Critical caveat: While blind resume reviews are a good start, they're just that: a start. After you've picked out candidates using the blind review technique, you still have to meet them for an interview. And when you meet them, you'll learn all the demographic information you worked so hard to avoid in the first place

Blind review addresses bias in screening. It doesn't fix:

What to do: Combine blind resume review with structured interviews, standardized questions, and diverse interview panels

Use blind review when:

Skip blind review when:

This is where many founders create legal risk without realizing it.

Disparate impact = when a neutral policy has a disproportionate negative effect on a protected class

An employer whose screening test or requirement has a disparate impact on a protected group must show that the requirement is job-related and consistent with business necessity

The landmark case: Griggs v. Duke Power (1971)

An employer required a high school diploma or passing scores on intelligence tests for certain jobs, which disproportionately excluded African American applicants based on longstanding educational inequalities

The Supreme Court ruled this violated Title VII, even though there was no intent to discriminate.

The problem with automatically rejecting people without degrees:

Degree requirements often do have a disparate impact against African American and Latino applicants

To defend a degree requirement, you must prove:

Degree requirements are slippery, in part because it isn't clear exactly what particular skills, aptitudes, or abilities a degree confers (unless a particular degree is required for licensing, like a law degree or medical degree)

Example - 10-person startup, Texas:

High risk auto-rejection: "All candidates must have a 4-year college degree" (Disproportionately screens out Black and Latino candidates who could excel in the role)

Lower risk approach: "Bachelor's degree in Computer Science OR 4+ years professional software development experience OR completion of coding bootcamp + portfolio of projects"

Why this works: Provides alternative pathways to demonstrate competence without requiring a degree

Lower-risk automatic screening criteria:

✅ Required certifications/licenses (when legally required for the job)

✅ Must-have technical skills (but test them, don't just rely on resume keywords)

✅ Geographic requirements (when genuinely necessary)

✅ Years of experience (with caution)

❌ College degree (unless truly job-related)

❌ Specific schools ("must be from Ivy League")

❌ GPA requirements (can screen out people who worked through school)

❌ Employment gaps (discriminates against caregivers, people with disabilities)

❌ "Culture fit" algorithms (often proxies for "people like us")

If you're using AI/algorithms to screen resumes:

The EEOC has emphasized that employers using software/algorithms/AI as "selection procedures" can face disparate impact liability if outcomes disproportionately exclude protected groups

Companies need to implement regular audits of their AI hiring tools to check for disparate impact across protected classes. Human oversight should be mandatory, no candidate should be rejected by an algorithm without human review

Example - 12-person startup, California, using AI resume screener:

AI tool automatically rejects candidates who:

Result: Disparate impact discrimination claim + potential AI hiring law violations

Better approach:

Short answer: Keep them. For at least one year. Longer is better.

Private employers must retain personnel and employment records for one year from the date of making the record or the personnel action involved, whichever occurs later

What this means:

Employment statutes require covered employers to retain job candidates' records—even for the candidates who aren't hired—including applications, resumes, interview notes, assessment tests, reference checks, drug screens and background screens

Best Practice: Keep for 2 Years

Best practice is to retain all job applications and resumes – solicited or unsolicited – for a minimum of two years from the date of the hiring decision

Why 2 years?

Everything related to the hiring decision:

Not only do you need to keep the resume or application, you must also retain supporting applicant documentation. This would include items such as: interview notes, assessment tests, reference checks, background checks, all related documents leading to a hiring or non-hiring decision, as well as the offer or rejection letter

For rejected candidates, keep:

If a Discrimination Charge Is Filed

When an EEOC charge has been filed against your company, you should retain personnel or employment records relating to the issues under investigation as a result of the charge until the final disposition of the charge or any lawsuit based on the charge

What this means: If someone files an EEOC complaint, you must keep ALL related records until the case is fully resolved (even if that takes years)

Physical resumes:

Digital resumes:

ATS (Applicant Tracking System):

After retention period expires:

When you're ready to "toss" those applications with confidential data, shred it or safely delete the electronic data

Don't just throw in trash: Resumes contain PII (personally identifiable information) - name, address, phone, email, potentially SSN

Proper disposal:

California

Colorado

New York

Texas

Florida

Set up organized system:

If using blind review:

If not using blind review:

Be specific:

✅ "Lacks required Python experience"

✅ "Has 2 years experience, role requires 5+"

❌ "Not a good fit"

❌ "Bad vibes"

For each rejected candidate, note:

Why this matters: If you face discrimination claim, you need to show legitimate, non-discriminatory reasons for rejections

Immediately after hire decision:

When retention period expires:

Why How You Handle Resumes Matters

Resume review and retention isn't just logistics; it's legal compliance and bias prevention.

Best practices:

On blind review:

On automatic rejection:

On retention:

Three actions this week:

The goal isn't perfect hiring; it's fair hiring with defensible documentation.

Blind review reduces bias. Thoughtful screening criteria avoid disparate impact. Proper retention protects you legally.

Do all three, and you'll hire better while staying compliant.

This content is provided for informational purposes only and does not constitute legal advice; for guidance on your specific situation, please consult with an employment attorney licensed in your state.