Tag Archives: Fair Credit Reporting Act

Is Your Background Check Too Broad? New D.C. Law Bans Requests for or Use of Credit Information

Background
Credit information is often one component of a comprehensive employment background check. As we have previously reported, employers utilizing background checks performed by a credit reporting agency are subject to a number of notice, consent, and other requirements under the Fair Credit Reporting Act (FCRA).   A new D.C. law goes even further than the FCRA, … Continue reading this entry

Watch Your Back: The Growing Threat of FCRA Background Check Class Actions

California Emloyers
Class action suits against employers alleging a violation of the Fair Credit Reporting Act when using background checks performed by a credit reporting agency have more than tripled in 2014, with new cases continuing to be filed this month. There have also been numerous settlements during the year, with some ranging from $2 million to … Continue reading this entry

Ban the Ban-the-Box? Proposed Law May Clarify Background Check Dilemma in Regulated Industries

On the heels of the Equal Employment Opportunity Commission’s (EEOC) increased scrutiny regarding criminal history questions during the hiring process and the wave of new state ban-the-box laws, Congress has proposed legislation that actually protects certain employers when they seek to comply with the laws that regulate their industries. The “Certainty in Enforcement Act of … Continue reading this entry

Employers Should Be Wary of Credit Checks

Many employers require background and credit checks for their prospective employees. Increasingly, civil rights advocates and the EEOC have raised questions concerning the discriminatory impact of these practices. Under the disparate impact theory of discrimination, a seemingly neutral policy has a greater impact on protected individuals than those individuals not protected. When a claim of … Continue reading this entry

Is Your Company Prepared to Comply With the New FCRA Regulations, Including a Required Audit?

Does your company provide its employees’ information to outside agencies for payroll purposes? Or maybe your company uses an outside agency to provide pre-employment background check screenings such as criminal background checks? If so, your company may be subject to the FTC’s new federal regulations pertaining to the FCRA, which took effect on July 1, … Continue reading this entry