Employee Credit Checks

News & Analysis as of

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

Use of Credit Checks as a Hiring Screen Draws Questions

Credit checks have become a common tool for employers looking for information to screen employees. Especially for employers who are inundated with employment applications in this tight job market, credit checks are an easy...more

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