The Consumer Financial Protection Board (CFPB) recently issued guidances titled Consumer Financial Protection Circular 2024-06: Background Dossiers and Algorithmic Scores for Hiring, Promotion, and Other Employment Decisions | Consumer Financial Protection Bureau and Consumer Financial Protection Circular 2023-03: Adverse action notification requirements and the proper use of the CFPB’s sample
HR - Background Checks
CFPB Issues Guidance With Aggressive Interpretation of FCRA Applicability to Employee Monitoring and Screening Tools
The Consumer Financial Protection Bureau (CFPB) recently issued guidance that takes an aggressive position regarding the scope of the Fair Credit Reporting Act (FCRA) as covering certain employee monitoring and assessment tools used for hiring and to gauge employee productivity. This development affects virtually every employer using third-party vendors for
New FDIC Regulations to Ease Section 19 Criminal History Hiring Restrictions Take Effect October 1
New revisions to the Federal Deposit Insurance Corporation (FDIC) regulations that will ease the restrictions on financial institutions hiring individuals with criminal histories—even for some with criminal offenses related to possession with the intent to distribute illegal drugs—are set to take effect on October 1, 2024.
Spring Cleaning for FCRA Compliance: Using the Most Up-To-Date Federal Summary of Rights
The Consumer Financial Protection Bureau’s (CFPB) updated Final Rule on the federal Fair Credit Reporting Act (FCRA) Summary of Rights includes such non-substantive changes as corrections to contact information for various federal agencies and eliminating reference to the term “Federal Land Banks,” as well as other technical changes.
Updated FCRA Summary of Consumer Rights Released with a Mandatory Compliance Deadline of March 20, 2024
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 Consumer Rights.” This version will replace the version published in October 2018. The
New National Defense Authorization Act Expands ‘Fair Chance’ Initiatives to Covered Finance Institutions
Covered financial institutions (such as banks and credit unions) have been swept into a new “fair chance” initiative designed to further reduce barriers to individuals with certain convictions.
Reports About the Wholesale Demise of Claims Against Employers Under the Fair Credit Reporting Act (FCRA) are Premature
Lawsuits against employers under the FCRA show no signs of abating in 2023, including nationwide class actions. Employers can fortify efforts to comply with the FCRA by, among other things, reviewing their policies and procedures and providing FCRA compliance training.
Online Public Records Aggregators Not Protected from FCRA Suit by Section 230
In a recent opinion, Henderson v. The Source for Public Data, L.P., et al, the U.S. Court of Appeals for the 4th Circuit considered whether Section 230(c)(1) of the Communications Decency Act (CDA) – a federal law that allows social media websites to provide a forum for users to post
CMS Designates More Providers as “High Risk” – Expect Delays During Enrollment and CHOWs Due to Mandatory Finger-Print Background Checks
Understanding CFPB’s Legal Advisory on “Permissible” Purpose
The Consumer Financial Protection Bureau (CFPB) recently issued a legal Advisory in early July 2022, intending to protect the privacy rights of individuals subject to background checks by third-party consumer reporting agencies (CRAs) under the federal Fair Credit Reporting Act (FCRA). The Advisory also seeks to remind users (e.g., employers)
The Latest in Multi-Jurisdictional Background Check Compliance
Conducting criminal background checks on job candidates is a common practice for employers but one that raises a host of compliance concerns amid a series of federal, state, and local laws and regulations governing how and when background checks may be conducted.
Sands Shift for Background Screening for Manufacturers
Manufacturing employees have a hand in everything that our country produces. Naturally, manufacturers want to know their employees are reliable and trustworthy. Manufacturers are taking steps, including background checks, to ensure a single hire does not inadvertently cause liability.
Eighth Circuit Holds Article III Standing Was Lacking for an Alleged Violation of the FCRA’s “Pre-Adverse Action” Notice Provision
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) in federal court. The Eighth Circuit’s opinion in Schumacher v. SC
The Rest of the Story (for Now): Employer Prevails in FCRA Class Action Alleging “Stand-Alone” Disclosure Violation
As we predicted four years ago, class action lawsuits against employers under the Fair Credit Reporting Act (FCRA) continue to spike, including class actions targeting background check disclosures.1 Before procuring a background check from a consumer reporting agency, the employer must disclose its intention to do so and obtain
CPRA: Background, Notice at Collection, and Website Privacy Policy
As the pandemic ebbs in late 2021, employers need to confront new data protection challenges. In the first podcast in the Littler California Privacy Rights Act (CPRA) Podcast Series, Co-Chair of Littler’s Privacy Practice, Philip Gordon, along with core privacy team members, shareholders Kwabena Appenteng and Zoe Argento, discuss