Tag Archives: FCRA

California Federal Court Strikes Down FCRA Claim

EEOC
Earlier this month, in a case pending in the U.S. District Court for the Central District of California, Home Depot avoided a class action suit under the Fair Credit Reporting Act (FCRA). The lawsuit accused the company of improperly obtaining personal information about job applicants by relying on background check authorization forms that did not … Continue reading this entry

Proposed Texas Legislation Would Limit Employers’ Ability to Use Employees’ and Job Applicants’ Credit Information

Texas State Representatives Terry Canales (District 40, serving part of Hidalgo County) and Nicole Collier (District 95, serving part of Tarrant County) have proposed legislation related to employers’ consideration of credit information for employees and job applicants.  HB 317 amends Chapter 52 of the Texas Labor Code by generally prohibiting a covered employer’s use of … Continue reading this entry

EEOC v. Freeman: Another Employer Victory in EEOC’s Enforcement Efforts Regarding Employer Use of Background Checks

Last summer, we wrote about the federal Fair Credit Reporting Act (“FCRA”) requirements in conjunction with the EEOC’s effort to sue employers who use background checks for job applicants and employees. Essentially, the EEOC alleges that an employer’s use of background checks can lead to a disparate impact among applicants and employees. Thus far, the … 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

Fair Credit Reporting Act Amended To Require Credit Score Disclosures To Adversely Affected Applicants/Employees

Employers may have additional disclosure requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act’s amendments to the Fair Credit Reporting Act (“FCRA”). The purpose of the FCRA is to protect consumers by ensuring fairness and accuracy in credit reporting. The Dodd-Frank Act, which provides for various changes to financial regulations, amended section 1681(m) … Continue reading this entry

Secretly Conducting Criminal Background and Credit Checks of Prospective Employees Exposes Employers to Liability

A recent settlement of a class action lawsuit alleging violations of the Fair Credit Reporting Act (FCRA) reinforces why employers should ensure all aspects of their hiring practices are compliant with the FCRA, as well as other applicable federal, state, and local employment laws. Hall v. Vitran Express, Inc. (N.D. Ohio). The lead plaintiff in the … Continue reading this entry