Retailer - Fall 2010

In This Issue:

- Retailer’s Recap

- Trouble Looms Under the ADAAA

- Noteworthy Numbers

- U.S. Department of Labor Spells Out Rules On Unpaid Internships

Excerpt from "Retailer's Recap"

Are credit checks going the way of the mechanical cash register? Nobody, it seems, wants employers to use credit checks as criteria for making hiring or promotion decisions any more. Except employers. The Equal Employment Opportunity Commission has said that credit checks do not predict future job performance and can have a racially disparate impact. (In other words, they tend to exclude a disproportionate number of applicants or candidates from certain minority groups.) As of the date of this publication, four states have passed statutes prohibiting employers from conducting credit checks in connection with the employment process, and legislation is pending (although currently stalled) in Congress to amend the Fair Credit Reporting Act to contain a similar prohibition. The good news for retailers is that the courts continue to recognize that credit history is relevant for individuals who will be working in cash-handling positions, and the state statutes and the proposed federal legislation all contain exceptions for certain “finance-related” positions.

Please see full newsletter below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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