Employee Credit Checks

News & Analysis as of

N.D. Cal. Judge Puts a Check on Plaintiff’s Novel LinkedIn Background Check Theory Under FCRA

The federal Fair Credit Reporting Act (FCRA) has recently spawned an unprecedented number of class action complaints against employers for allegedly failing to comply with FCRA’s hyper-technical disclosure and consent...more

New York City Council Prohibits Employers from Requesting or Using Credit History to Evaluate Applicants and Employees

New York City Mayor Bill de Blasio has signed into law a bill prohibiting employers from using credit checks for employment purposes, which will take effect on September 2, 2015. The new law makes it an unlawful...more

LinkedIn Reference Search Not Subject To Fair Credit Reporting Act

Finding that LinkedIn’s “Reference Search” function was not subject to the Fair Credit Reporting Act (FCRA), a Northern California federal district court dismissed a putative class action filed on behalf of job applicants who...more

Class Actions over Background Checks Continue

As previously reported in an earlier blog post, retailers are under attack in a wave of class actions alleging violations of the Fair Credit Reporting Act. The allegations are essentially the same in all of these suits: that...more

New York City Largely Bans Employers from Considering Consumer Credit History

On May 6, 2015, New York City Mayor Bill de Blasio signed into law a bill barring employers in New York City from discriminating against employees and applicants based on their consumer credit histories. The exceptions to...more

New York City Bans Employers From Using Credit Checks To Screen Job Applicants

Under a bill signed into law by Mayor Bill de Blasio on Wednesday, May 6, 2015, New York City businesses will be banned from using credit reports, bankruptcies and liens to disqualify applicants from employment. The Stop...more

NYC Council Votes to Ban Employers from Conducting Credit Checks

On April 16, 2015, the New York City Council (the “Council”) passed a bill (Int. 0261-2014) prohibiting employers from requesting or using the consumer credit history of an employee or job applicant when making employment...more

New York City Council Passes Ground-Breaking Legislation Limiting the Use of Credit Checks in Employment

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

Fourth Circuit Affirms Summary Judgment against EEOC in Background Check Suit

Last week, in Equal Employment Opportunity Commission (“EEOC”) v. Freeman, No. 13-2365 (4th Cir. Feb. 20, 2105), the Fourth Circuit affirmed the award of summary judgment against the EEOC in its suit alleging that the...more

Retailers Beware: Background Checks Continue To Be Subjected To Scrutiny and Class Action Litigation

Retailers are getting hit with a tsunami of class action litigation alleging violations of the Fair Credit Reporting Act (“FCRA”), Federal Trade Commission (“FTC”) guidelines, and related state laws. ...more

New Year: Resolve, Review, Revise

The new year is a time for reflection. With that reflection often comes a resolve for change, from small modifications of some old habits to wholesale new beginnings and everything in between. From a business perspective,...more

Background Checks Headline in 2014

In 2014, background checks were a hot topic in state and local legislatures. Before this year, only 8 jurisdictions in the country had passed laws preventing private employers from asking job candidates about their criminal...more

Employment Background Checks: Tips Employers Should Know to Comply With Federal Laws

Many employers rely on background checks to screen job applicants and employees when making important personnel decisions, including hiring, retention, and promotion. In March, the Equal Employment Opportunity Commission...more

New Delaware Law “Encourages” State Vendors to “Ban the Box”

Delaware’s Governor recently signed a “ban the box” law to prohibit public employers from inquiring into or considering the credit or criminal history of a job candidate during the initial application process (up to and...more

Sixth Circuit Upholds Dismissal of EEOC Suit Against Employer Screening Applicants Based on Credit History Information

In April 2012, the Equal Employment Opportunity Commission (EEOC) issued its updated enforcement guidance concerning how, in its view, Title VII of the Civil Rights Act of 1964 (Title VII) restricts an employer’s discretion...more

Sixth Circuit Rejects EEOC’s Expert Evidence In Proposed Pattern Or Practice Class Action Litigation

After a string of recent cases in which the agency has been forced to pay employer attorneys’ fees for bringing frivolous claims, the most recent zinger came from the Sixth Circuit last week in EEOC v. Kaplan Higher Education...more

A Check on the EEOC Attack on the Credit Check

We have written a few times about the EEOC’s closer inspection of background checks and the use of criminal records in employment decisions because of their potential adverse impact on classes of applicants. The EEOC has also...more

Privacy Breaches Can Be One-Two Punch for Employers: Arbitrator Awards Damages for Employee Credit Checks that Breached Privacy...

Twenty-six employees of the Alberta Justice and Attorney General’s Maintenance Enforcement Program (“MEP”) were each awarded $1250.00 in damages each after a Peace Officer carrying out a workplace investigation used their...more

Credit Checks In California Now Tougher Than Ever

Effective January 1, 2012, California employers will have to avoid yet another potential legal hazard that haunts businesses with the threat of costly penalties: the unauthorized use of consumer credit reports regarding job...more

Connecticut Mandates Paid Sick Leave and Bars Pre-Employment Credit Checks

With Democrats fully in control of both legislative houses and the governorship of a union-friendly state for the first time in more than a decade, two new laws have been enacted that place Connecticut at the leading edge of...more

Better Double Check Your Use Of Credit Checks

Colorado, Maryland and Pennsylvania are the latest to join a growing number of states that have taken steps to limit an employer's ability to perform credit checks on its employees. So far, only four states have actually...more

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