Showing Posts In "Legal Issues" Category





The Washington Report – January 2020

At the CFPB On January 9th, the Consumer Financial Protection Bureau (CFPB) announced it has filed suit in the U.S. District Court for the Central District of California against several companies that offer student debt relief services. The CFPB alleges that the companies have violated the Fair Credit Reporting Act (FCRA), Consumer Financial Protection Act […]


Delta Settles FCRA Class Action for $2.3 Million

The district court for the Northern District of California recently issued an order granting Plaintiff’s motion in Schofield v. Delta Air Lines, Inc., for preliminary approval of a class settlement totaling $2.3 million for a class of about 44,100 class members. The plaintiffs in the case applied for employment with Delta Airlines, but were allegedly […]


Eleventh Circuit Affirms Dismissal of Attempted FCRA Class Action Against Furnisher of Consumer Information

The Eleventh Circuit recently dismissed putative class action suit Hunt v. JP Morgan Chase Bank, Nat’l Ass’n, holding that the bank had not violated its duties as a furnisher of consumer information when it reported that a customer’s account was past due even though a foreclosure lawsuit has been filed. In addition, JP Morgan Chase […]


Ninth Circuit Weighs in on Calculating the FCRA’s Seven-Year Reporting Rule

The Ninth Circuit Court of Appeals recently weighed in on a Fair Credit Reporting Act (FCRA) case in which the plaintiff sued a consumer reporting agency (CRA) for issuing a tenant screening background check report on him that contained his criminal history, claiming a violation of the California Investigative Consumer Reporting Agencies Act (ICRAA). The […]


Ruling Raises Important Considerations for Independent Contractor Background Screening

A decision by the Southern District of Iowa in Smith v. Mutual of Omaha Insurance Company has provided some hope for those seeking ways to defend against Fair Credit Reporting Act (FCRA) class action claims. The plaintiff in the case claimed he did not obtain a position as an insurance agent based on his background […]


Complaints Allege Racist Hiring Practices at Walmart Warehouse

Racial discrimination complaints have been filed against Walmart by two African American warehouse workers who were working for several years in a Distribution Center before a temporary lay-off took place. Jobs at the facility were insourced from a third-party contractor, which caused Walmart to disproportionately rescind job offers to African American employees based on criminal […]


Massachusetts Attorney General is Checking Whether Employment Applications Contain Prohibited Criminal History Questions

Nineteen businesses were recently cited by Attorney General Maura Healey for violation of the state’s ban-the-box law. A similar round of enforcement action took place in May 2018 that included the investigation of more than 70 Massachusetts employers and resulted in 21 citations. Four of those employers were fined $5,000 and were required to enter […]


EEOC Consent Decree Over Criminal History Background Checks Serves as a Reminder to Employers to Take a Fresh Look at Their Screening Practices

Several high-profile lawsuits have been brought against national employers over their use of criminal history information and in November, the Equal Employment Opportunity Commission (EEOC) announced that a nationwide retailer settled a race discrimination lawsuit that challenged its use of criminal history for employment purposes. More specifically, the EEOC alleged that African Americans were excluded […]


EEOC’s Background Check Guidelines Shot Down

The Equal Employment Opportunity Commission (EEOC) issued guidance in April 2012 called “Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions Under Title VII” that restricts employers from having a blanket ban on hiring individuals with a criminal record. Employers are urged to develop “targeted screen(ing)” and “individual assessment(s)” to determine […]


Why Background Screening Leads to Lawsuits

Although cost is certainly a factor when it comes to choosing a background screening company, outsourcing pre-employment screening to under-qualified background screening agencies could endanger employees, the company’s finances and their reputations. It is important to work with a partner that understands federal and local statutes regarding information disclosure and consideration. Possible liabilities when running […]




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