Adults Surveyed on Impact of Financial Background Checks in the Workplace

A survey of more than 1,000 workers conducted by the National Financial Educators Council (NFEC) found 5.2% of respondents reported they were turned down for jobs due to their financial background while 26.3% reported employers ran financial background checks on them. In the nationwide poll, the survey asked respondents to answer the following questions: “Have you ever been turned down for a job or promotion as a result of your credit or financial background?” And, “Has an employer or potential employer ever conducted a credit or financial background check as a condition of hiring you or giving you a promotion?” The survey revealed 61.6% of women aged 35 to 44 underwent financial background checks compared to 48.9% of women aged 45 to 54. Also, 37.6% of women in rural areas underwent financial background checks compared to 21.1% of women in the suburbs.

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Active Shooters at Work on Rise

Deaths from workplace-related violence are on the rise nationally, although the overall number remains relatively small. Nationwide, 61 people were killed at their jobs by a co-worker in 2014, up from 49 in 2011, according to the most recent data from U.S. Bureau of Labor Statistics. The increase, workplace specialists say, reflects the growing anxieties among employees as wages stagnate, living costs rise, and on-the-job pressures intensify from companies operating with leaner staffs. In some cases, companies are not sensitive enough when they lay off or dismiss workers. Companies can help prevent workplace violence by treating people well, especially on the way out the door, security experts said. Some of the best-run companies warn employees in advance of cutbacks so workers can prepare.

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UK Votes to Leave the EU: Data Protection Standards Unlikely to be Affected

The UK has decided to withdraw its membership from the European Union. Despite the result, data protection standards are unlikely to be affected. The full details of how and when the UK will negotiate its exit from the EU is still unclear. The process for withdrawal will be a long one, and unless there is an agreement to the contrary, it will take a minimum of 2 years. The next step is for the UK to serve notice of its intention to exit the EU using the formal legal procedure set out in Article 50 of the Treaty on European Union. From a data protection perspective, any change will not be immediate. Regardless of this decision, the incoming EU General Data Protection Regulation (GDPR) will become law on May 25, 2018, meaning that the UK will almost certainly experience life under the GDPR. Businesses will therefore need to continue to prepare for, and start to, comply with the GDPR.

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With Credit Reporting Errors Harming Missourians, McCaskill Keeps up Fight to Protect Consumers

After receiving complaints from individuals around the country who have had trouble removing erroneous information or even learning about what is contained in their specialty credit report, U.S. Senator Claire McCaskill continued to fight for consumers by pushing for more information from the little-known world of consumer reporting agencies (CRAs). While consumers might be familiar with the three large credit bureaus—Experian, Equifax and TransUnion—the smaller CRAs typically only make themselves known to consumers after the consumers have been subjected to an adverse action. Although the Consumer Financial Protection Bureau has oversight authority over these CRAs, it is not required that the CRAs register with the agency, so there is no central list or database.

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Security Clearance Background Checks—McCaskill, Tester Probe Oversight Plans for Creation of New Agency

U.S. Senators Claire McCaskill and Jon Tester are probing the transition of federal security clearance background checks to a newly created agency— raising concerns about whether there is a concrete plan for the creation, operation and oversight of the new bureau. “We are concerned that this transition is moving forward without firm plans in place for the transition, operation and oversight of the new bureau,” the Senators wrote in the letter. “We also want to ensure that the [National Background Investigations Bureau] will not simply be a new name for the [Federal Investigative Service]. Instead, it is critical that you make significant structural changes to improve the integrity, management and oversight of the security clearance process. We also remain concerned about the timeliness of current and pending investigations and want to ensure that plans are in place to address the significant backlog of background investigations during this transition, while maintaining the integrity of the investigation process.”

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California Federal Court Tentatively Approves $5.7 Million Deal to Settle Class Action Alleging

A California federal judge issued a written tentative ruling indicating that she would likely approve AutoZone, Inc.’s agreement to pay $5.7 million to settle claims that the company illegally ran credit checks on 200,000 prospective employees. In September 2014, two individuals filed suit on behalf of a class against AutoZone that alleges AutoZone was routinely running background checks on prospective employees without complying with applicable law. According to plaintiffs, AutoZone failed to properly disclose to potential hires that it was running background checks on them, thereby violating state law and the FCRA. The auto parts retailer has proposed payment of the $5.7 million settlement amount in the form of $20 in cash or $40 in gift cards to class members.

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Waffle House Must Face Class Employment Claims

A class action claiming Waffle House didn't hire prospective employees based on false information garnered from background checks, will proceed, despite Waffle House trying to shut the case down. Lead plaintiff William Jones attempted to get a job at a Waffle House in Ormond Beach, Florida in December 2014, and claims the defendant restaurant chain violated the FCRA because it procured a background report from defendant The Source for Public Data, L.P, without taking adequate steps to make sure the information reported was accurate. Jones claims that Waffle House refused to hire him based on the information about supposed criminal convictions, despite it being false. Waffle House and Public Data moved to dismiss the lawsuit for lack of standing. U.S. District Judge Roy Dalton, Jr. tossed Waffle House's motion holding that "as a general rule, 'federal claims should not be dismissed on a motion for lack of subject matter.

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"Ban The Box" Does More Harm Than Good

Life in prison is meant to be difficult. But it doesn’t always get better once you’re out. Re-entering offenders often have a tough time finding employment, even when they are motivated and able to work. But “ban the box” – a popular policy aimed at helping ex-offenders find jobs – doesn’t help many ex-offenders, and actually decreases employment for black and Hispanic men who don’t have criminal records. This is a classic case of unintended consequences. We should repeal “ban the box” and focus on better alternatives.

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Uber Settles Driver Lawsuit Over Background Checks, to pay $7.5 Million

Uber has agreed to pay $7.5 million to settle a lawsuit brought by drivers over background checks conducted by the ride-hailing company. The case in San Francisco federal court involved allegations that Uber terminated drivers from its platform after obtaining their consumer background reports without authorization.The settlement is the latest in an effort by Uber to remove some of the litigation risk facing the company. Uber agreed in April to pay up to $100 million to settle a separate class action lawsuit involving drivers who claimed they were employees entitled to benefits, not independent contractors. Lawyers representing drivers in the background check case filed a memorandum of understanding in court and said they are in the process of drafting a formal settlement. Both settlements must be approved by a San Francisco federal court judge.

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Trends in the “Ban the Box” Movement: Recent Developments in City Ordinances

As cities across the nation adopt “ban the box” legislation that regulates private employers’ ability to inquire into applicants’ and employees’ criminal histories, employers face a nuanced gauntlet of compliance issues. Because of the current wave of ban the box ordinances is likely to continue, employers should continue to evaluate their pre-employment and hiring practices and make necessary adjustments. Specifically, affected employers should review their employment applications, advertisements, and postings to ensure that any questions regarding an applicant’s criminal history are legally compliant for each cities and municipalities. Affected employers should also make sure all hiring/recruiting managers are apprised of the new ordinance requirements through training and revision of policies.

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Philadelphia Limits Employer Use of Credit Information

Beginning July 7, 2016, employers in Philadelphia may not consider credit history or other credit-related information for job-related decisions for many non-managerial jobs. This change stems from an amendment to the Fair Practices Ordinance approved by City Council and signed by Mayor Jim Kenney. Subject to certain exemptions, the amendment makes it an unlawful discriminatory practice for a covered employer to procure, to seek to procure, or to use credit information of an employee or applicant in connection with hiring, discharge, tenure, promotion, discipline, or consideration of any other "term, condition, or privilege of employment" for the employee or applicant. Philadelphia employers should guard against potential pitfalls of the new law. The amendment also makes it unlawful for an employer to procure or to seek a person's cooperation or consent to procure credit information.

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Louisiana Legislature Passes “Ban the Box” for State Employers

Louisiana is anticipated to become the latest state to enact statewide protections for applicants with criminal backgrounds under the well-known “ban the box” movement. The bill, HB 266, recently passed both houses of the Louisiana Legislature and is currently awaiting approval from Governor John Bel Edwards, who is expected to sign the bill into law. Louisiana private employers will not be affected by the law as written. This bill only affects state employers, which are defined as “any department, office, division, agency, commission, board, committee, or other organizational unit of the state.” Once enacted, state employers may not inquire about a prospective employee’s criminal history at any time prior to an initial interview. If the prospective employer does not conduct an interview, then the employer may not require the applicant to disclose a criminal conviction prior to making a conditional offer of employment.

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Commissioners Approve "Ban the Box" Ordinance

People applying for a job in Broward County government will no longer be initially asked if they've been arrested or have a criminal background. Commissioners unanimously voted to "ban the box," a phrase that refers to the check box on employment applications that asks about a person's past criminal wrong doing. "I think we are leading the way here by setting an example that we ought to ensure everyone has an opportunity to provide for themselves," said Broward Commissioner Dale V.C. Holness, who first brought the ordinance to the Board for approval.

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Connecticut Joins Ban the Box Movement

Connecticut has joined the “Ban the Box” movement, becoming the most recent state in the nation to implement statewide legislation prohibiting employers from making inquiries into an applicant’s criminal history on job applications, except under certain circumstances. Employers should review their job applications now to ensure compliance by the January 1, 2017, effective date. Employers still may make criminal background inquiries in Connecticut, but the timing of such inquiries now shifts to later in the hiring process, such as during the interview process or contingent upon an offer. Additionally, Connecticut’s prior restraints on erased record inquiries remain in effect. Under the law, employers may inquire into an applicant’s criminal background when required under state or federal law, or when the job requires a security or fidelity bond or equivalent bond.

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Federal Railroad Administration Expands Drug and Alcohol Testing For Maintenance-of-Way Workers

The U.S. Department of Transportation’s Federal Railroad Administration (FRA) recently announced a final rule expanding drug and alcohol testing applicable to maintenance-of-way (MOW) employees, effective one year from the date of the rule’s publication (which has yet to be announced). MOW employees work directly on and around railway tracks and crossings, maintaining the tracks, bridges, roadways, signals and electric machinery to ensure trains have a clear path to pass through. The new rule subjects these employees to a broader spectrum of drug and alcohol testing, including random testing, pre-employment testing, post-accident testing, return-to-duty testing, reasonable cause testing and reasonable suspicion testing. The FRA also announced a final rule updating safety regulations for MOW employees. These regulations, effective April 1, 2017, include amendments to existing policies regarding roadway maintenance machinery and maintenance worker qualifications, among other things.

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Colorado Repeals Duplicative Employment Verification Requirement

It’s not often that HR and hiring managers receive good news when it comes to changes in I-9 and E-Verify practice. As most employers are painfully aware, federal and state requirements relating to I-9 and immigration rules are generally becoming more complex every year – caught up in a web of often-conflicting rules regarding the proper procedure for verifying a new hire’s eligibility to work in the United States. But every so often, a rule changes. A regulation expires. Or if you’re really lucky, a state legislature listens to the employer community and decides to reduce the paperwork burden. And that’s exactly what happened in the state of Colorado when Governor John Hickenlooper signed House Bill 16-1114 into law, effectively repealing Colorado’s employment verification requirement. Under the new law which goes into effect on August 10, 2016, Colorado employers will no longer need to complete and maintain a separate affirmation form and retain copies of all documents presented during the I-9 process.

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Staffing Co. Hit With $209K Fine for I-9 Filing Violations

A judge with the U.S. Department of Justice immigration office has ordered a temporary employment company to pay nearly $210,000 for more than 400 failures to properly file work authorization forms, skewing closer to the government’s damages calculation despite some mitigating circumstances. Administrative Law Judge Ellen K. Thomas of the Office of the Chief Administrative Hearing Officer found Golden Employment Group Inc. failed to prepare or present 236 I-9 forms, didn’t properly complete 89 such forms and failed to timely file them on 140 occasions. The Form I-9 is used to confirm an employee’s identity and work authorization. Finding the instances of failure to submit forms were more egregious than the late or improper filings, Thomas assessed a penalty of $500 for each of the missing forms and $400 for the other 229, for a total of $209,600.

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