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
HR - Background Checks
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.
CMS Designates More Providers as “High Risk” – Expect Delays During Enrollment and CHOWs Due to Mandatory Finger-Print Background Checks
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
For Manufacturers Struggling With Labor Shortage, Time to Review Background Check Processes
As COVID-19 restrictions continue to relax, manufacturers are facing an ever-tightening labor market. Amidst supply-chain disruptions and computer chip shortages, human capital is proving to be increasingly scarce. Many manufacturers are struggling to fill open positions.
Supreme Court Provides Additional Guidance on FCRA Standing
On June 25, 2021, the Supreme Court of the United States issued a ruling that provides additional guidance related to the Fair Credit Reporting Act (FCRA), a federal law that regulates the collection of consumers’ credit information and access to their credit reports. In the employment context, the FCRA most
The Dust Hasn’t Settled Yet: Employers Must Continue to Be Thoughtful About Criminal Record Screening Policies
Last month, the new chair of the EEOC, Charlotte A. Burrows, was the keynote speaker at a conference regarding new research on criminal recidivism.1 The EEOC has been mostly quiet on the topic of criminal background checks and Title VII since the U.S.