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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
Employment background checks help employers hire individuals with integrity whom they can trust, and who do not present a risk to the business, other employees, or the customers and clients that the business serves. Buyers in...more
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
Changes to Philadelphia law will further restrict employers’ use and reliance on applicant, current employee, and independent contractor background information and affect the employee application and employee management...more
How to Hire a Super Hero - An employer subject to the Fair Credit Reporting Act (FCRA) and state “mini-FCRA” laws, which are generally more restrictive than the FCRA, can obtain investigative consumer reports, i.e.,...more
For years, Philadelphia has maintained ordinances substantially restricting employers’ use of criminal record and credit histories in employment screening. These regulations are in addition to, not in lieu of, the federal...more
The Ninth Circuit recently issued two mostly pro-employer federal Fair Credit Reporting Act (FCRA) background check decisions that held: ..background check disclosures may contain some concise explanatory language, but...more
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
New federal restrictions on hiring practices could be around the corner. Last month, the U.S. House Committee on Financial Services passed a bill titled “Restricting the Use of Credit Checks for Employment Decisions Act”...more
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
Since 2011, the number of Fair Credit Reporting Act (FCRA) lawsuits filed annually has continued to climb. The data demonstrates that employers struggle with compliance, especially regarding the FCRA’s disclosure...more
Two weeks ago, the U.S Court of Appeals for the Ninth Circuit held in Gilberg v. California Check Cashing Stores, LLC that a federal background check disclosure form that also included state law notices violated the Fair...more
The time to act is now. Employers should take a look at their background check forms in light of a recent ruling of the U.S. Court of Appeals for the Ninth Circuit that state disclosures cannot be combined with the...more
Almost two years ago to the day, the U.S. Court of Appeals for the Ninth Circuit became the first appellate court to rule on the lawfulness of a liability waiver in a Fair Credit Reporting Act (FCRA) disclosure. ...more
On November 29, 2018, the Ninth Circuit Court of Appeals issued a decision in Mitchell v. Winco Foods, No. 17-35998, 2018 U.S. App. LEXIS 33483 (9th Cir. Nov. 29, 2018); a Fair Credit Reporting Act (“FCRA”) case on appeal...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
A little-known provision of a new federal law will likely impact the hiring process of most employers. On September 12, 2018, without seeking any public comment and with no advanced notice, the Consumer Financial Protection...more
As of September 21, 2018, employers who use third-party vendors to obtain background checks must utilize an updated version of the “Summary of Your Rights” disclosure as required by the Fair Credit Reporting Act (FCRA). With...more
Employers that use criminal record-screening policies must continue to be vigilant about compliance with all applicable laws and should know that the EEOC’s scrutiny of such policies, while perhaps scaled back, has not ended....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
On September 12, 2018, the Consumer Financial Protection Bureau (CFPB), the federal agency which oversees the federal Fair Credit Reporting Act (FCRA) issued an interim final rule updating the agency’s model FCRA notice....more
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
Every year, an increasing number of states and localities clamp down on an employer’s ability to ask about applicants’ criminal histories (our update from earlier this year provides a good primer). The good news is that...more
The Ninth Circuit recently issued its latest opinion in Spokeo, Inc. v. Robins, the closely-watched putative class action dating back to 2010. The plaintiff initiated the lawsuit against Spokeo, which aggregates publicly...more
The Eleventh Circuit Court of Appeal found that an arbitration agreement entered into by a putative class representative and his eventual employer was enforceable even though the agreement was signed after the plaintiff filed...more