News & Analysis as of

Class Action Job Applicants Hiring & Firing

A class action is a type of legal action where a representative individual or group of individuals can bring a claim on behalf of a larger group or class who share a common legal interest.
Fisher Phillips

AI Workplace Screener Faces Bias Lawsuit: 5 Lessons for Employers and 5 Lessons for AI Developers

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A California federal court just allowed a frustrated job applicant to proceed with an employment discrimination lawsuit against an AI-based vendor after more than 100 employers that use the vendor’s screening tools rejected...more

Saul Ewing LLP

The Genetic Information Privacy Act: Recent Surge in Class Action Lawsuits Against Illinois Employers

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Over the last decade, Illinois employers have been faced with a rash of class action lawsuits under the Biometric Information Privacy Act (BIPA), causing many employers to pay hefty sums and alter their biometric timekeeping...more

Fox Rothschild LLP

The EEOC Obtains a Settlement in its Artificial Intelligence Class Action

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We previously reported here on the U.S. Equal Employment Opportunity Commission’s (EEOC) lawsuit alleging that a group of affiliated employers engaged in age discrimination through the use of artificial intelligence...more

Sheppard Mullin Richter & Hampton LLP

Time Is Not Always Money: Ninth Circuit Holds That Pre-Employment Drug Testing Is Not Compensable Under California Law

On June 13, 2022, the Ninth Circuit Court of Appeals held in Johnson v. WinCo Foods Holdings, Inc, et al. that class members who were not yet employed by WinCo were not entitled to compensation for the time required to take a...more

Fox Rothschild LLP

New EEOC Initiative Targeting AI Technology Used in Hiring Process Presents Increased Risk of Class Litigation

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The Equal Employment Opportunity Commission (EEOC) and Department of Justice (DOJ) have recently announced plans to monitor employers’ use of artificial intelligence (AI) tools in hiring decisions that may discriminate...more

Ballard Spahr LLP

Eighth Circuit finds that class-action FCRA plaintiff lacks Article III standing under Spokeo

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The Eighth Circuit reiterated in a decision last month that trial courts must distinguish between FCRA plaintiffs who have suffered concrete harm and plaintiffs who merely seek to collect statutorily allowed damages as a way...more

Littler

New Opinion Allowing Plaintiff to Present His Class Action Willful FCRA Claims to a Jury Reinforces Need to Remain Vigilant About...

Littler on

The Fair Credit Reporting Act (FCRA) is a federal law that governs employment-related background checks.  Most lawsuits asserting federal claims proceed in federal court. The FCRA is atypical in that FCRA claims can proceed...more

Burr & Forman

Eighth Circuit Dismisses FCRA Class Action Due to Lack of Standing

Burr & Forman on

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

Manatt, Phelps & Phillips, LLP

Convicted Murderer Survives Motion to Dismiss in Hiring Suit

Employers in New York may be liable for the failure to hire a convicted murderer, a federal court judge in the state ruled, refusing to dismiss a proposed class action. Henry Franklin was convicted of second-degree murder...more

Littler

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

Littler on

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

California Federal Magistrate Judge Approves $175,000 Class Action Settlement for Employer’s Alleged Violation of FCRA’s...

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A federal magistrate judge in the Northern District of California approved a class settlement of nearly $175,000 for an alleged violation of the FCRA’s stand-alone disclosure requirement. The class was comprised of over 1,000...more

Jackson Lewis P.C.

Ninth Circuit: FCRA Does Not Require Disclosure To Be Distinct In Time from Other Employment Documents

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The Ninth Circuit recognized that plaintiff’s argument was novel but was thwarted by the statute itself. Plaintiff below, argued on behalf of a class, that the company violated the Fair Credit Reporting Act (FCRA) by...more

Seyfarth Shaw LLP

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

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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

Womble Bond Dickinson

Ninth Circuit Creates ‘Concise Explanation’ Standard for Background Check Disclosure Forms

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By Jason Wyman On March 20, 2020, the Ninth Circuit issued its opinion Walker v. Fred Meyer, Inc., 2020 U.S. App. LEXIS 8809 (9th Cir. Mar. 20, 2020) and created a “concise explanation” standard to judge when an employer’s...more

Payne & Fears

Key California Employment Law Cases: February 2020

Payne & Fears on

Frlekin v. Apple, Inc., -- Cal. -- (2020) - Summary:  The time employees spent on Apple’s premises waiting for and undergoing a mandatory exit search of personal belongings was compensable as “hours worked” under Wage...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

Akin Gump Strauss Hauer & Feld LLP

Critical Considerations for Compliance with the FCRA

These days, companies conducting background checks on job applicants have a lot to think about. Most companies are aware of the Fair Credit Reporting Act (FCRA) and FCRA’s various state analogs. FCRA, one of a number of...more

Jackson Lewis P.C.

Federal Court Allows Class Action Website Disability Access Case To Proceed Against An Employer

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While we continue to wait for guidance from the government on website accessibility standards, plaintiffs continue to challenge the accessibility of company websites. For years, individuals have brought lawsuits claiming that...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

McGuireWoods LLP

California Court of Appeals Joins FCRA’s Mad Tea Party

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The roller coaster of employer liability under the background check provisions of the Fair Credit Reporting Act (FCRA) recently took an upswing with the California Court of Appeals’ decision in Culberson v. Walt Disney Parks...more

Verrill

Is Your Website Accessible to Disabled Online Job Seeker?

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On March 22, 2019, a federal judge permitted an Ohio man’s class action lawsuit to proceed against Ford Motor Company. The lawsuit alleges the company discriminated against disabled job applicants because its online job...more

Foley & Lardner LLP

“Stand-Alone” REALLY Does Mean Stand-Alone - Ninth Circuit Court of Appeals Interprets the FCRA

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On January 29, 2019, the U.S Court of Appeals for the Ninth Circuit (covering a number of states and territories bordering the Pacific Ocean) issued a far-reaching opinion that will likely impact the hiring process of...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Second Verse, Same as the First: Ninth Circuit Weighs in Again on Background Check Disclosures, Raising the Compliance Bar Even...

The disclosure requirement of the federal Fair Credit Reporting Act (FCRA) remains one of the most contentious and expensive litigation areas for employers. The case law from various federal district courts has been a mixed...more

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