News & Analysis as of

Criminal Background Checks Fair Credit Reporting Act (FCRA) Class Action

Burr & Forman

Eighth Circuit Dismisses FCRA Class Action Due to Lack of Standing

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Following the Supreme Court’s decision in Spokeo, Inc. v. Robins, 578 U.S. 330 (2016), federal courts have continued to examine what is an injury in fact under the Fair Credit Reporting Act (“FCRA”). On April 4, 2022, the...more

Littler

The Rest of the Story (for Now): Employer Prevails in FCRA Class Action Alleging “Stand-Alone” Disclosure Violation

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As we predicted four years ago, class action lawsuits against employers under the Fair Credit Reporting Act (FCRA) continue to spike, including class actions targeting background check disclosures....more

Fisher Phillips

Sometimes Less Is More: Background Check Disclosures Can Go Too Far and Lead to FCRA Violations

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Under federal law, an employer that conducts a background check for an applicant or employee must first provide written notice, also known as a disclosure, to that individual – but recent court decisions demonstrate how...more

Troutman Pepper

Pennsylvania Federal Court Finds Lack of Article III Standing in Purely Procedural FCRA Violation and Dismisses Putative Class

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On July 27, 2020, the Eastern District of Pennsylvania confirmed that a plaintiff lacks Article III standing to state a claim for violation of the Fair Credit Reporting Act (“FCRA”) premised solely on the failure to receive a...more

Seyfarth Shaw LLP

Ninth Circuit Holds That Background Check Disclosures Should Not Contain Any Extraneous Information

Seyfarth Shaw LLP on

Seyfarth Synopsis: On March 20, 2020, the Ninth Circuit Court of Appeals held the Fair Credit Reporting Act’s (“FCRA”) standalone disclosure requirement does not allow for the inclusion of any extraneous information in an...more

Seyfarth Shaw LLP

EEOC Consent Decree Over Criminal History Background Checks Serves as a Reminder to Employers to Take a Fresh Look at Their...

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Seyfarth Synopsis: After six years of litigation, on November 18, 2019, the Equal Employment Opportunity Commission (EEOC) announced a multimillion-dollar settlement with a national employer, which resolved litigation that...more

Littler

Dollar General Reaches Settlement with the EEOC in Years-Long Background Check Bias Suit

Littler on

Employers should continue to exercise caution and care in drafting their criminal record screening policies.  A recent settlement by Dollar General underscores this point, even though it comes on the heels of the Fifth...more

Womble Bond Dickinson

Two Class Actions Alleging Starbucks Violated FCRA’s Background Report Disclosure Requirements Are Grinding Toward Settlement

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Two pending class action lawsuits alleging coffee giant Starbucks violated the Fair Credit Reporting Act (“FCRA”) by relying on flawed background reports to decline employment to over 8,000 job applicants will likely settle...more

Littler

Criminal Record Screening Policies Continue to Raise Important Multi-Jurisdictional Compliance Issues

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Employers that use criminal record screening policies must continue to be vigilant about compliance with all applicable laws. Following a multi-million dollar settlement by a leading retailer earlier this year, a recent...more

Jackson Lewis P.C.

Class Action Trends Report Summer 2018

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ABC Discount Superstores prides itself on undercutting any competitor’s prices— and on the diversity of its workforce. Always on the cutting edge, the company was among the first in the retail industry to embrace online...more

Locke Lord LLP

January 2018 Independent Contractor Misclassification and Compliance News Update

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There were six noteworthy cases in the area of independent contractor misclassification and compliance in January 2018 involving drivers of trucking companies, behavioral therapists, ride-sharing drivers, insurance agents,...more

Alston & Bird

Class Action Roundup: Summer 2017

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Welcome to our second Roundup of 2017, where we feature the cases litigated and settlements finalized during the second calendar quarter of the year. It was a very active quarter in almost all of the categories we monitor,...more

Arnall Golden Gregory LLP

Friday News Flash

This week’s news flash – a quick overview of timely background screening and immigration-related news that is important to your organization. 1. The ongoing saga of the President’s executive order to implement a travel ban...more

Robinson+Cole Data Privacy + Security Insider

Pennsylvania Transit sued for Fair Credit Reporting Act violation

Last week, the Southeastern Pennsylvania Transportation Authority (SEPTA) was hit with a class action alleging violations of the Fair Credit Reporting Act (FCRA) for not sufficiently notifying job applicants of its use of...more

Robinson+Cole Data Privacy + Security Insider

Amazon’s motion for summary judgment denied in FCRA class action suit

U.S. District Judge Gary Feinerman denied Amazon, Inc.’s (Amazon) motion for summary judgment on October 7, 2015, in Illinois federal court, in a class action case over alleged violations of the Fair Credit Reporting Act...more

Baker Donelson

FCRA Class Action Suits on the Rise

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It is a common practice for employers to check criminal backgrounds or credit ratings of potential, and sometimes current, employees. Background checks that provide this type of information are helpful to employers when...more

Littler

State Appellate Court Considers Employer’s Duty to Conduct Criminal Background Checks

Littler on

In the last few years, there has been a significant spike in the number of lawsuits challenging employer use of criminal background checks, including class action lawsuits brought under the federal Fair Credit Reporting Act. ...more

Williams Mullen

Using Consumer Reports for Hiring Decisions Creates Unanticipated Litigation Risk for Employers

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When employers obtain a consumer report for employment purposes, §1681b(b)(3)(A) of the Fair Credit Reporting Act (the “FCRA”) requires issuance of a pre-adverse action notice to the subject of the report (the “consumer”) if...more

Hinshaw & Culbertson LLP

That's A Lotta Cheddar: Pizza Chain Pays Big to End Background Check Case

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

Foley & Lardner LLP

Background Checks? That is the Question

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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

Dentons

Trouble in the Magic Kingdom: Disney Finds Itself the Villain in This Fairytale

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Disney is known for its fairytales and happy endings. Usually its adorable characters and feel-good plots earn it wide acclaim. But recently, a California judge agreed with the plaintiff, in Roger L. Culberson II v. The Walt...more

Parker Poe Adams & Bernstein LLP

Plaintiffs' Class Action Claims Target Background Checks

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

Mintz - Employment, Labor & Benefits...

Staffing Companies Hit with Class Action Alleging Violation of Fair Credit Reporting Act

Fair Credit Reporting Act class actions remain on the rise. The latest one of note was recently filed in Maryland federal court against staffing agencies Aerotek, Inc. and Allegis Group, Inc., alleging that they violated the...more

Bond Schoeneck & King PLLC

Labor and Employment: Recent Lawsuit Highlights the Importance of Fair Credit Reporting Act Compliance

The Fair Credit Reporting Act (FCRA) expressly requires employers to provide applicants with a stand-alone disclosure and authorization form prior to obtaining a background check. This form must be separate from the...more

BakerHostetler

Don’t Forget About the Fair Credit Reporting Act: Background Check Class Action Suit Filed Against Trucking Company

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As we have noted in a number of prior posts background checks can be a helpful tool for management, especially during the hiring process, but they can also be a ripe source for potential liability on a number of fronts....more

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