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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
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
Use of employment-related background checks by employers to discover information about the work history, education, criminal record and financial history of job applicants has become ubiquitous. In one recent survey of...more
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
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
One of the earliest U.S. privacy laws applicable to private entities was the Fair Credit Reporting Act (FCRA), enacted in 1970. The FCRA placed substantial requirements on the use of background checks and credit information...more
Good news for employers using social media to vet job applicants: A Federal District Court recently ruled the technology used in LinkedIn's Reference Search does not constitute a “consumer background check” of employees and...more
The Fair Credit Reporting Act (FCRA) was enacted to insure that consumer reporting agencies act with “fairness, impartiality, and respect for the consumer’s right to privacy.” But one federal court held recently that...more
Does your company run background checks on its employees? Do you pay a third-party to run the reports and trust them to get it right? You may not be as safe as you think you are.
Just ask Whole Foods, Paramount...more
Hyping The “Hyper-technical” -
The slowly rising waves of Fair Credit Reporting Act (FCRA) class-action litigation are beginning to crash against employers. And if you thought that the FCRA only applied to credit...more
The Federal Trade Commission (FTC) has issued an updated guide for employers regarding compliance with the federal Fair Credit Reporting Act (FCRA) when conducting background checks, as well as the Equal Employment...more
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
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
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