Background Checks Fair Credit Reporting Act

News & Analysis as of

Employment Law - October 2015

FTC Offers Employers Lesson in FCRA Compliance—And Limited Exceptions - Why it matters: A California employer recently received a lesson in Fair Credit Reporting Act (FCRA) compliance from the Federal Trade...more

The Fair Chance Act And Stop Credit Discrimination In Employment Act--New Interpretations From The NYCCHR

Earlier this year, the New York City Council passed two laws which place limitations on an employer’s ability to use background checks including credit checks (otherwise known as consumer reports) in employment decisions: the...more

What Should Employers Expect During The New Supreme Court Term?

The first Monday in October is the traditional first day of a new U.S. Supreme Court term.  As always, the 2015-16 term will have several cases that are of particular interest to the nation’s employers.  Here is a review of...more

NYC Commission on Human Rights Explains New NYC Background Check Laws

We were pleased to host a program on September 28, 2015 on New York City’s two new background check laws, the Stop Credit Discrimination in Employment Act and the Fair Chance Act. Paul Keefe, Supervising Attorney at the NYC...more

FCRA Class Action Suits on the Rise

It is a common practice for employers to check criminal backgrounds or credit ratings of potential, and sometimes current, employees. Background checks that provide this type of information are helpful to employers when...more

EEOC Settles Background Check Litigation with BMW, But Also Faces Steep Attorneys’ Fees in Freeman Case

After several high-profile setbacks in disparate impact discrimination lawsuits challenging criminal record screening policies, the EEOC has entered into a settlement (consent decree) in one of its few remaining cases, a...more

The Background Check Conundrum: “Manufacturing” a Problem (Pun Intended)

I am a longtime advocate of pre-employment criminal background checks. So I have watched with resigned acceptance as the EEOC, over 100 states and cities across the United States, and other public advocates have fought to...more

Two New NYC Statutes Constrain Hiring Process - Hedge Up - A Heads-Up on Employment Issues Confronting the Hedge Fund Industry

If you read one thing... - Two new employment statutes place additional burden on New York City firms during prospective employee screening and provide fodder for the plaintiffs’ bar - Credit history and...more

The Employment Law Authority - July/August 2015

A federal appellate court recently reinstated a lawsuit brought by a dining services employee who claimed that she was sexually harassed by a male coworker. According to the Sixth Circuit Court of Appeals, a reasonable jury...more

FTC provides guidance on FCRA requirements for employer background checks

When examining banks and companies subject to CFPB supervisory authority for FCRA compliance, CFPB examiners will look at whether the bank or company has followed FCRA requirements for use of background checks on employees...more

Avoiding Class Action Litigation Under Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is a growing source of class action litigation, due to the high potential penalties that it provides for very technical violations. The statute imposes conditions, among other things, on...more

FCRA Tip: Keep Hands On

A federal trial court will conduct a trial on a Fair Credit Reporting Act claim because the employer streamlined its background check system. In this case, a bank used a third party service provider to conduct background...more

Employment Law Reporter – August 2015

THE INCREASING DANGER OF BACKGROUND CHECKS - New Laws and Emerging Privacy Rights Complicate an Already Difficult Process. The intersection of privacy laws and employment practices can be a dangerous one. Employers...more

What U.S. Multinational Employers Need to Know about Background Checks

Employers often run background checks on their applicants and employees in order to protect the workplace and to assemble a good and trustworthy workforce. For U.S.-based employers with operations overseas, the legal...more

Using Criminal Convictions in the Hire Process: A Hobson's Choice for Employers?

Is the government really telling employers that they are not allowed to disqualify an applicant because of past criminal activity? In a word, yes. That is increasingly becoming the case on the state level and has been the...more

Startups and the Beginning of the Employment Relationship - Who, What, When, Where, and Why?

WHO to Hire? Startup companies can reduce or eliminate future problems with employees through careful hiring practices. Best practices include...more

Notice versus Strict Procedures – Section 613

Section 613 of the Fair Credit Reporting Act (FCRA) requires that consumer reporting agencies (CRAs), when reporting a consumer report for employment purposes which contains public record information, which are likely have an...more

Private-Sector Employers Doing Business with Local Governments may be Subject to Even More Ban-the-Box and Other Laws Restricting...

In 1998 Hawaii became the first state to pass a so-called "ban-the-box" law, prohibiting both private- and public-sector employers from inquiring about an applicant's conviction history until after the employer makes a...more

That's A Lotta Cheddar: Pizza Chain Pays Big to End Background Check Case

The parent company of Chuck E. Cheese's restaurants, CEC Entertainment, Inc., has agreed to pay $1.75M to settle a class action lawsuit in California brought by applicants who claimed the company provided improper background...more

Georgia Enacts “Mini”-FCRA

For more than four decades, the federal Fair Credit Reporting Act (“FCRA”) has regulated consumer reporting agencies (“CRAs”) that furnish consumer reports (i.e., background checks) to third parties such as employers. Over...more

New York City Bars Employers from Considering Criminal History before Extending a Job Offer

On June 29, 2015, Mayor de Blasio signed the Fair Chance Act, a new law that generally prohibits New York City employers from discriminating against job applicants with a criminal record and that prohibits inquiries about...more

Magistrate Judge Rules LinkedIn’s “Reference Search” Does Not Violate Fair Credit Reporting Act

As we discussed in a previous post, a class action lawsuit (Sweet, et al. v. LinkedIn) was filed last year against LinkedIn in California based on allegations that the reference reports LinkedIn generates for premium...more

Background Screening Companies May Now Report Convictions Older Than Seven Years in Nevada

Under the federal Fair Credit Reporting Act (FCRA), background screening companies (or consumer reporting agencies) are generally prohibited from reporting certain types of derogatory information that the FCRA considers to be...more

Background Checks? That is the Question

Has your company decided yet whether it will conduct criminal background or credit checks? If you are already using that tool as part of your job screening process, are you keeping up with legal developments in every city,...more

Nevada Removes 7 Year Limitation on the Reporting of Convictions

Nevada has removed the 7-year restriction on background screening company’s ability to report criminal conviction information for employment screening purposes. Which means that convictions can be reported without regard to...more

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