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What do Whole Foods, Chuck E. Cheese, Michael’s Stores, Dollar General, Panera, Publix, and K-Mart have in common? Each of these companies has faced lawsuits (including class actions) under the Fair Credit Reporting Act...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
Earlier this week, the arts and crafts retailer Michael’s Stores, Inc. received notice of a new class action lawsuit challenging its use of applicant background checks. The lawsuit alleges that the retailer failed to provide...more
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
If you are like many employers, you use an online job application or are considering switching to an online process. Online applications have many benefits, and there are numerous vendors prepared to help you set up an online...more
The Washington, DC area has become the leading edge of the "ban-the-box" movement, with four new ban-the-box laws applicable to private employers enacted in the past six months. Baltimore, Maryland, started the trend when...more
The focus on employment background checks is not going away. A few weeks ago I wrote about Dollar General’s $4 million dollar settlement of a class action lawsuit based on alleged violations of the Fair Credit Reporting Act...more
Publix Super Markets Inc. has agreed to pay $6.8 million to settle a class-action lawsuit over the supermarket chain’s background check procedures. Under the Fair Credit Reporting Act (FCRA), employers must provide prior...more
In McCorkle v. Schenker Logistics, Inc., 2014 WL 5020598 (M.D. Pa. October 8, 2014), the court held that terminating an employee for not fully disclosing his criminal history, as requested in an employment application, did...more
Does your business use a contractor to provide in-home services to your customers? If so, you probably want the contractor to conduct background checks on its employees. You want the contractor to screen out people who pose...more
There has been a recent uptick in class action litigation initiated by job applicants claiming that employers violated the Fair Credit Reporting Act (the FCRA) in the manner they procured and used consumer reports about the...more
Recently two federal agencies, the Equal Employment Opportunity Commission (EEOC) and Federal Trade Commission (FTC), issued joint guidance on job applicant and employee background checks and "What Employers Need to Know."...more
It’s become second-nature to “Google” people to whom you’ve been introduced or are planning to meet. For many employers, it’s just as easy to engage in the same process with those applying for employment.
Businesses should check their background check consent forms and their pre-adverse action waiting periods, after a recent federal court decision out of Pennsylvania.
Employers frequently use credit reports (sometimes referred to as “consumer reports”) as a tool in determining whether to hire, promote or retain an employee. The Fair Credit Reporting Act (FCRA), a federal law, allows an...more
Effective November 1, 2013, Seattle, Washington will join various other jurisdictions (most recently Minnesota, Indiana, North Carolina and Buffalo, New York) that limit inquiries into and the use of criminal records for...more
An employer’s reluctance in hiring an applicant with a criminal history is understandable and sensible. Employers have an obligation to ensure a safe workplace, can be fined for failing to enact safeguards against workplace...more
Employers that use third parties to perform background checks on applicants or employees must start using new Fair Credit Reporting Act (FCRA) forms immediately. The new Consumer Financial Protection Bureau, which is...more
The Consumer Financial Protection Bureau (the “Bureau”) has taken over rulemaking and enforcement responsibilities for the Fair Credit Reporting Act (“FCRA”) and has updated an important FCRA form that employers must use when...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
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