News & Analysis as of

Employer Liability Issues Adverse Employment Action Fair Credit Reporting Act (FCRA)

Seyfarth Shaw LLP

Washington’s Fair Chance Act: New Amendments Transform Employer Background Check Policies

Seyfarth Shaw LLP on

In 2018, Washington enacted a Fair Chance Act, requiring covered employers to wait until after considering an applicant to be “otherwise qualified” for the position at issue to inquire about or consider criminal history when...more

Akerman LLP - HR Defense

Looking for Skeletons in the Closet? Avoid These Background Check Mistakes

Akerman LLP - HR Defense on

A scary surprise is fun to encounter when you are in a haunted house at a Halloween event, but not so much fun when you are performing a background check on a potential employee. Even worse is finding out after the fact that...more

Dinsmore & Shohl LLP

CFPB Releases New Required Form for Use in Employee Background Check Process

Dinsmore & Shohl LLP on

The Consumer Financial Protection Bureau has released an updated version of the "Summary of Your Rights Under the Fair Credit Reporting Act" notice that all employers must provide to employees before taking any adverse action...more

Littler

Reports About the Wholesale Demise of Claims Against Employers Under the Fair Credit Reporting Act (FCRA) are Premature

Littler on

The continued filing of lawsuits against employers under the FCRA underscores the need for in-house counsel, Human Resources, and Talent Acquisition to comply with the statute, especially the “pre-adverse action” notice...more

Fisher Phillips

Federal Appeals Court Sides with Employer in Job Applicant’s Background Check Suit: 3 Steps to Avoid Similar Claims

Fisher Phillips on

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

Littler

Eighth Circuit Holds Article III Standing Was Lacking for an Alleged Violation of the FCRA’s “Pre-Adverse Action” Notice Provision

Littler on

On April 4, 2022, the U.S. Court of Appeals for the Eighth Circuit joined the Ninth Circuit in holding that a plaintiff lacked Article III standing to prosecute her statutory claims under the Fair Credit Reporting Act (FCRA)...more

McDermott Will & Emery

[Webinar] Background Checks: The Advent of the New Employment Class Action (Part 2) - September 10th, 11:00 am PT

Class action litigation brought under the Fair Credit Reporting Act (FCRA) is on the rise—particularly in California—after the US Court of Appeals for the Ninth Circuit issued a 2017 decision applying a hypertechnical...more

McDermott Will & Emery

[Webinar] Background Checks: The Advent of the New California Employment Class Action - July 30th, 11:00 am - 12:15 pm PDT

McDermott Will & Emery on

Class action litigation brought under the Fair Credit Reporting Act (FCRA) is on the rise—particularly in California—after the US Court of Appeals for the Ninth Circuit issued a 2017 decision applying a hypertechnical...more

Littler

Ninth Circuit Rules Only Named Plaintiff Must Have Article III Standing For Class Certification

Littler on

In Ramirez v. Trans Union, the Ninth Circuit addressed whether, at the class certification stage of a putative class case, only the named plaintiff or all class members must have Article III standing (i.e., a concrete injury...more

Blank Rome LLP

Requesting a Background Check to Make an Employment Decision? Read This First.

Blank Rome LLP on

The Fair Credit Reporting Act (“FCRA”) provides federally-imposed limitations on all employers who seek information from a Consumer Reporting Agency about an applicant or employee for use in making an employment decision,...more

Bradley Arant Boult Cummings LLP

Background Check Update: There’s A New FCRA Form in Town

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

McGuireWoods LLP

CFPB Updates Summary of Rights Under Fair Credit Reporting Act

McGuireWoods LLP on

On Sept. 12, the Consumer Finance Protection Bureau issued an updated model disclosure form, required under the federal Fair Credit Reporting Act (FCRA) as of Sept. 21, 2018. The revised “Summary of Your Rights Under the Fair...more

Orrick - Employment Law and Litigation

FCRA Developments: Updated Summary of Rights & “Stand-Alone” Disclosure Need Not Be Separate In Time

Employers across the country should dust off their background check policies and forms and be mindful of recent developments related to the federal Fair Credit Reporting Act (FCRA)....more

Davis Wright Tremaine LLP

Employee Background Checks: Avoiding FCRA Liability When Conducting Due Diligence

Employers, understandably, want to know as much as possible about job candidates, and many look to background checks as a source of relevant information. Unfortunately, the laws governing employer use of background checks,...more

Littler

Employers Prevail in FCRA Class Actions

Littler on

The FCRA is not a classic employment law, but regulates the procurement and use of background checks by employers. Before procuring a background check from a consumer reporting agency (CRA), the employer must disclose its...more

Lowndes

Background Checks: Fair Credit Reporting Act Compliance

Lowndes on

Employees – and unsuccessful applicants for employment – are increasingly asserting claims under the Fair Credit Reporting Act (FCRA) for violations arising out of background checks conducted by third party credit reporting...more

Arnall Golden Gregory LLP

Background Screening – When is Section 603(y) Applicable?

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

Williams Mullen

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

Williams Mullen on

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

Baker Donelson

Employment Background Checks: Tips Employers Should Know to Comply With Federal Laws

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Many employers rely on background checks to screen job applicants and employees when making important personnel decisions, including hiring, retention, and promotion. In March, the Equal Employment Opportunity Commission...more

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