News & Analysis as of

Fair Credit Reporting Act (FCRA) Employer Liability Issues

Seyfarth Shaw LLP

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

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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

Bass, Berry & Sims PLC

Navigating Tennessee Background Check Laws: A Guide for Employers

Bass, Berry & Sims PLC on

Employers in Tennessee face a complex legal landscape when conducting background checks on job applicants. Ensuring compliance with state and federal laws is essential to mitigate legal risks and maintain fair hiring...more

Benesch

The Devil You Don’t Know - Might Not Be So Bad! Good News for Driver Credit and Background Checks

Benesch on

In this era of driver and employee shortages, employers of all kinds -  motor - carriers, freight intermediaries and shippers, should be aware of a byzantine array of federal statutes that could confer liability upon them,...more

Tucker Arensberg, P.C.

A Primer on AI Issues in the Workplace - Part 1

Tucker Arensberg, P.C. on

Employers that use tracking technology and artificial intelligence (AI) to monitor workers and make employment decisions may now have one more thing to worry about—the Fair Credit Reporting Act (FCRA)....more

Arnall Golden Gregory LLP

CFPB Circular Targets Workplace Monitoring Tools

On October 24, 2024, the Consumer Financial Protection Bureau (“CFPB”) issued a circular titled “Background Dossiers and Algorithmic Scores for Hiring, Promotion, and Other Employment Decisions.” In essence, the circular...more

Parker Poe Adams & Bernstein LLP

Consumer Financial Protection Bureau Expresses Concerns About Use of Worker Profiling Data

Most consumers are aware that their personal data is collected, compiled, analyzed, and sold to third parties for marketing and other purposes. Many employees may not know of similar data collection practices relating to...more

Littler

The CFPB Cautions Employers About Using Technology to Track, Assess, and Evaluate Workers

Littler on

On October 24, 2024, the federal Consumer Financial Protection Bureau (CFPB) published a circular cautioning employers about using workplace tracking technology, including AI, under the Fair Credit Reporting Act (FCRA). The...more

Sheppard Mullin Richter & Hampton LLP

CFPB Warns Employers Regarding FCRA Rules for AI-Driven Worker Surveillance

On October 24, the CFPB issued Circular 2024-06, which warns companies using third-party consumer reports, particularly surveillance-based “black box” or AI algorithmic scores, that they must follow the Fair Credit Reporting...more

Rodemer Kane Attorneys at Law

Does a DWAI Show Up on a Background Check in Colorado?

Driving While Ability Impaired (DWAI) is a serious offense in Colorado that can have far-reaching consequences. Many individuals who face this charge wonder about its long-term impact, particularly when it comes to employment...more

Epstein Becker & Green

Fair Credit Reporting Act Preempts State Law Defamation Claim Over Background Check

Recently, the Sixth Circuit found that the Fair Credit Reporting Act (“FCRA”) preempted a former employee’s state law defamation claim against his former employer.  While the FCRA can impose burdensome requirements on the...more

Troutman Pepper Locke

Can You Legally Get Criminal Background Checks on Independent Contractors?

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Independent contractors can pose safety and security risks as much as employees. Some go into customer homes. Others have access to personally identifiable information and proprietary business information. Some independent...more

Orrick, Herrington & Sutcliffe LLP

Massachusetts State Appeals Court orders a consumer has standing to sue in state court under the FCRA without federal standing

On January 11, the Massachusetts Court of Appeals ordered that an employee has standing to sue in state court, despite lacking standing to sue in a federal court. The employee (plaintiff) sued a prospective employer for...more

Akerman LLP - HR Defense

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

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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

Spilman Thomas & Battle, PLLC

Are Privacy Policies Alone Enough to Protect Employee Privacy? Ask Tesla

From application to termination, employee privacy considerations live throughout all stages of the employment lifecycle. Thus, employers should take heed of best practices and mechanisms when handling employee personal...more

Troutman Pepper Locke

CFPB Opines That Companies Using Automated Worker Surveillance Tools Must Comply with FCRA

Troutman Pepper Locke on

Do companies that use workplace surveillance tools to make hiring and firing decisions risk violating the Fair Credit Reporting Act (FCRA)? According to the Consumer Financial Protection Bureau (CFPB or Bureau) in a recent...more

Sheppard Mullin Richter & Hampton LLP

It’s Not Just the NLRB Watching You - NLRB Adds the Consumer Financial Protection Bureau to Its Ever Growing List of Interagency...

On March 7, 2023, the National Labor Relations Board (NLRB) and the Consumer Financial Protection Bureau (CFPB) signed a Memorandum of Understanding (“CFPB MOU”) that created a formal partnership between the two agencies. Per...more

Dinsmore & Shohl LLP

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

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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

Updated FCRA Summary of Consumer Rights Released with a Mandatory Compliance Deadline of March 20, 2024

Littler on

On March 17, 2023, the Consumer Financial Protection Bureau (CFPB) published an updated version of the publication entitled, “A Summary of Your Rights Under the Fair Credit Reporting Act,” which is also called the “Summary of...more

Fisher Phillips

A California Unicorn: Court Issues Favorable Background Check Ruling for Employer in Class Action

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Employers in California are frequently faced with class action lawsuits brought by current or former employees. Oftentimes, these actions are brought for alleged wage and hour violations, but we’ve seen an uptick in suits...more

Troutman Pepper Locke

California Federal Court Rules Employer’s Background Check Disclosures Meet FCRA Requirements

Troutman Pepper Locke on

A recent opinion issued by the U.S. District Court for the Northern District of California granted an employer’s motion for summary judgment, rejecting a series of technical arguments advanced by the plaintiff that the...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

Workplace Law Forecast 2023 - Legal predictions to help you prepare for the coming year in workplace law

Fisher Phillips on

It’s never easy to make accurate predictions about what we might expect to see in the workplace in the coming year. After all: - At the start of 2020, no one could have predicted COVID-19. - None of us had heard the phrase...more

McDermott Will & Emery

The 411 on Employment Background Checks in Transactions

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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

Jackson Lewis P.C.

Developments in Employee Screening for Real Estate Industry

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The real estate industry, and the people employed in it, build and maintain communities driving domestic growth. Naturally, employers in the real estate world want to know their employees are reliable and trustworthy. ...more

Fisher Phillips

Forecast: July 2022 Edition

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Welcome to FP Forecast, a monthly outlook featuring Fisher Phillips thought leaders providing their insights into what employers can expect in 2022 and beyond. By following along each month, you’ll be in the best position to...more

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