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While every employer engages in some due diligence when considering a new hire, if your company routinely, or even occasionally, obtains a “consumer report” as a way to vet candidates, it behooves you to understand the rules...more
The California Attorney General’s investigative sweep is a potential harbinger of increased focus on employers’ data privacy compliance with respect to employee data. On July 14, 2023, the California Attorney General...more
Employers should promptly update their Summary of Consumer Rights notice provided to applicants and workers before taking adverse employment action based on their background check reports, thanks to a new rule about to take...more
A job applicant who didn’t disclose a felony conviction can’t sue her prospective employer under a federal background-check law for failing to provide proper notice before rescinding her offer, according to a recent decision...more
Background check reports are an important – and in many cases essential – tool in making informed and responsible employment decisions. Gathering and using this information, however, carries legal obligations and...more
If you conduct pre-hire background checks, you know you have to comply with the Fair Credit Reporting Act (FCRA) or risk trouble (called lawsuits). Part of that compliance is providing notice to the applicant if you are going...more
Effectively immediately, employers who perform background checks on applicants or employees using third party consumer reporting agencies (these background checks are known as “consumer reports”)...more
Amendments affecting notice requirements under the Fair Credit Reporting Act (FCRA) went into effect on September 21, 2018. These amendments were part of the Economic Growth, Regulatory Relief, and Consumer Protection Act...more
Employers must update forms in conformity with amendments to the Fair Credit Reporting Act - As of September 21, 2018, employers must begin providing employees and applicants with the updated Summary of Consumer Rights....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
Q: My company uses a third-party vendor to conduct background checks on prospective employees. We heard there is a new model for the “A Summary of Your Rights Under the Fair Credit Reporting Act” notice. Should we be using...more
Effective September 21, 2018, employers that use nationwide credit reporting agencies for background checks will be required to use a new “A Summary of Your Rights Under the Fair Credit Reporting Act” form (“the Summary”)....more
Earlier this month, the Consumer Finance Protection Bureau (CFPB) issued updated model disclosure forms required under the federal Fair Credit Reporting Act (FCRA). The updated “Summary of Your Rights Under the Fair Credit...more
There is a little-known provision from a new federal law that will most likely impact your hiring practices and your standard hiring documents—and it kicked in last Friday. As of September 21, all employers must update their...more
In this episode of The Proskauer Brief, senior counsel Harris Mufson and associate Michelle Gyves discuss the main laws governing background checks for employers. We will discuss how employers can utilize the federal Fair...more
Virtually every thoughtful employer wants to hire the very best employees they can find. And why not? Good workers produce better products, provide better service, give maximum effort, learn and adopt the company’s best...more
In 1998, Hawaii became the first state to “ban the box,” prohibiting private employers from inquiring about a candidate’s criminal history until the employer has made a conditional offer. It was not for another 12 years...more
In April 2012, the Equal Employment Opportunity Commission (EEOC) issued its long-awaited “Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions Under Title VII of the Civil Rights...more
The Federal Trade Commission (FTC) just issued guidance for companies providing employment screening services. According to the FTC, they have “created new guidance for businesses aimed at giving employment background...more
When a company uses commercial background checks to evaluate the suitability of job applicants, they must comply with the Fair Credit Reporting Act (FCRA), which regulates the collection, dissemination, and use of consumer...more
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
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
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
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