On April 5, 2021, the Eleventh Circuit reversed a district court’s denial of a defendant’s motion to compel arbitration in a Fair Credit Reporting Act (“FCRA”) lawsuit arising from a former Comcast customer’s re-application...more
On January 29, 2020, the House of Representatives passed the Comprehensive CREDIT Act of 2020 (the “Act”), which would change federal laws pertaining to consumer reporting agencies and credit checks in a number of ways....more
Seyfarth Synopsis: On December 3, 2019, the Appellate Court of Illinois affirmed summary judgment in favor of a public utility company that considered credit checks for individuals applying for a customer service...more
New federal restrictions on hiring practices could be around the corner. Last month, the U.S. House Committee on Financial Services passed a bill titled “Restricting the Use of Credit Checks for Employment Decisions Act”...more
California state and local legislation has made the employment application and interview process nearly as nerve-wracking for employers as it is for prospective candidates. From salary history to criminal history, topics once...more
The federal Fair Credit Reporting Act (FCRA) provides protections for persons subject to “consumer reports” provided by third parties, including criminal background and credit checks mandated by employers. The employee or...more
Seyfarth Synopsis: Over the past few years, restrictions regarding the use of credit checks by employers on applicants and employees have been passed at various state and municipal levels, and the federal government has...more
The Seventh Circuit Court of Appeals has become the second federal court of appeals to weigh in on an important legal issue for employers in defending against expensive, increasingly common Fair Credit Reporting Act (FCRA)...more
Credit information is often one component of a comprehensive employment background check. As we have previously reported, employers utilizing background checks performed by a credit reporting agency are subject to a number of...more
In the final weeks before the end of the legislative session, the Massachusetts House and State both addressed major pieces of labor and employment legislation. However, although the legislature passed S.2119, an Act to...more
A new Philadelphia ordinance amending the City’s Fair Practices Act goes into effect on July 7, 2016. The amendment severely limits an employer’s ability to procure and use credit information on most applicants and employees...more
Last week, the Southeastern Pennsylvania Transportation Authority (SEPTA) was hit with a class action alleging violations of the Fair Credit Reporting Act (FCRA) for not sufficiently notifying job applicants of its use of...more
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
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
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
Last week, the Stop Credit Discrimination in Employment Act became effective. It amended the New York City Human Rights Law to prohibit most employers from making employment decisions based on an employee or applicant’s...more
The July 2015 edition of Employment Flash covers a number of developments, including: the U.S. Supreme Court's ruling that job applicants need only show that a religious accommodation was a factor in denying employment to...more
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
On April 16, 2015, the New York City Council, by a vote of 47-3, approved legislation that would prohibit the use of credit checks in employment decisions except in limited circumstances. The bill, which is expected to be...more
Background checks are increasingly leading to class action lawsuits alleging violations of the Fair Credit Reporting Act ("FCRA"). Many employers utilize background checks that include "consumer reports" during the hiring...more
Class action suits against employers alleging a violation of the Fair Credit Reporting Act when using background checks performed by a credit reporting agency have more than tripled in 2014, with new cases continuing to be...more
Back in school, I recall reading the short story The Lady or the Tiger? It’s about a woman made to choose between two fates for her would-be husband, neither of which was particularly pleasant. What she would choose is left...more
On April 19, 2013, Colorado's governor signed S.B. 18 to prohibit employers from considering an applicant's or employee's credit history in employment decisions. California, Maryland, Connecticut, Hawaii, Illinois,...more
Employers face rising criticism regarding their use of credit histories in hiring decisions. Civil rights advocates raise concerns that use of credit histories unfairly disadvantages certain segments of the population....more