On November 22, 2019, the federal Consumer Financial Protection Bureau filed a complaint in the U.S. District Court for the Southern District of New York against Sterling Infosystems, Inc. regarding allegations that it violated the Fair Credit Reporting Act in providing criminal background checks to employers.  Sterling is a “consumer reporting agency” as defined by the FCRA, which provides background check results to employers when requested.
Continue Reading Background Check Vendors Beware: the CFPB’s Authority to Enforce the FCRA Applies to You Too

On July 11, 2019, the House Financial Services Committee, led by Chairwoman Maxine Waters (D-CA), considered The Restricting Use of Credit Checks For Employment Decisions Act as one of four bills designed to reform the Fair Credit Reporting Act and the credit reporting system.


Continue Reading Why Employment Credit Checks May Soon be a Thing of the Past

On June 5, 2019, Nevada Governor Steve Sisolak signed into law Assembly Bill No. 132, which is the first state law to curb pre-employment marijuana drug tests.  The new law has two primary effects: 1) it makes it unlawful for Nevada employers to fail or refuse to hire a prospective employee because the applicant submitted to a screening test and the results of the test indicate the presence of marijuana; and 2) it provides employees who test positive for marijuana with the right to, at their own expense, rebut the original test results by submitting an additional screening test within the first 30 days of employment. 
Continue Reading Nevada Will Restrict Pre-Employment Marijuana Drug Testing Starting January 1, 2020

The Consumer Financial Protection Bureau issued a new “A Summary of Your Rights Under the Fair Credit Reporting Act” form on September 12, 2018.  This form replaces the previous version issued on November 12, 2012, and is expected to be implemented by employers on September 21, 2018.
Continue Reading New Compliance Requirements for FCRA Background Checks

A magistrate judge in the U.S. District Court for the District of Oregon recently made findings and recommendations to dismiss a purported class action against Kroger subsidiary Fred Meyer.  The suit alleges that the retailer’s background check process for prospective employees violates the Fair Credit Reporting Act by both failing to properly disclose that a report will be run, and failing to comply with the statute’s procedural requirements before taking adverse action against an applicant.
Continue Reading The Spokeo Chronicles: Another Tentative Background Check Win for Kroger Subsidiary

The New York City Commission on Human Rights recently amended its rules to establish certain definitions and procedures applying the Fair Chance Act. The Act makes it unlawful to discriminate against job applicants and employees on the basis of criminal history, and is particularly important for employers for two reasons….
Continue Reading N.Y.C. Commission on Human Rights Issues New Rules Applying the Fair Chance Act

On February 20, 2015, a unanimous panel of the Fourth Circuit affirmed the exclusion of expert testimony by EEOC expert Kevin Murphy and the grant of summary judgment against the EEOC in its suit challenging Freeman’s use of credit and criminal background checks in the hiring process.
Continue Reading EEOC Rebuked by Fourth Circuit on Criminal Background Check Litigation

The Texas Supreme Court is considering a case that could have important implications to disparate impact analysis, including on criminal background checks. The case also foreshadows further challenges from the Texas Attorney General to aggressive positions taken by federal enforcement agencies in regard to disparate impact.
Continue Reading Supreme Court Case Foreshadows Texas Attorney General Attacks on Disparate Impact Analysis