On March 2, the plaintiff’s counsel in Brown v. Delhaize America, LLC submitted an unopposed motion for preliminary approval, seeking Court approval of another FCRA class action settlement. Employers should treat this settlement as another reminder to verify…
Posts by Category: Background Check Compliance
Employee Background Checks: Duties and Limitations on the Employer
Conducting background checks is both a necessary and risky venture that employers take on when hiring and retaining employees. Employers are increasingly finding themselves in litigation challenging the use of background checks as part of the screening process when…
Class Suit Targets Uber’s Pre-Employment Background Checks
Uber Inc. has been hit with a putative class action in federal court in Newark claiming it violates the Fair Credit Reporting Act by using background reports in hiring decisions without allowing applicants to dispute entries in their reports. The case, Cuccinello v….
New FINRA Rule on Background Checks
FINRA (the Financial Industry Regulatory Authority) has issued a rule change for background screening requirements that went into effect on July 1, 2015. FINRA Rule 3110(e) is based on similar provisions in NASD Rule 3010(e) and NYSE Rule 345.11. In short, FINRA Rule…
Whole Foods Settles Background Check Class Action Lawsuit for $803K
Whole Foods Market Group Inc. has agreed to a nearly $803,000 class action lawsuit settlement over allegations that the natural grocery store chain violated the FCRA by not properly disclosing to prospective employees that they were running a background check….
Class Action Lawsuit Claims Bank Violated FCRA with Background Checks
A federal court in Virginia has denied a motion for summary judgment in a class action complaint that claims Wells Fargo Bank violated the FCRA when performing background checks on job applicants by coding some as “ineligible” prompting adverse action and…
Improper Use of Criminal Background Checks Could Cost You Millions
There is a growing movement to “Ban the Box” that has materialized in various states and local governments severely restricting, or absolutely prohibiting, the use of criminal background checks by employers. Over the past few years, the EEOC has challenged…
Spokeo, Inc. v. Robins: Petitioner Argues if There is No Actual Injury-in-Fact, Plaintiff Lacks Standing to Sue
Following the U.S. Supreme Court’s grant of certiorari on April 27, 2015 in Spokeo, Inc. v. Robins, No. 13-1339, the Petitioner has weighed in with their brief. As you may recall, the question before the Court has the potential to determine the future scope of…
Chuck E. Cheese Settles Background Check Lawsuit for $1.75 Million
On July 7, the United States District Court for the Southern District of California preliminarily approved a $1.75 million class action settlement under the FCRA involving Chuck E. Cheese’s background check practices. This settlement serves as another reminder of the…
Background Screening Companies May Now Report Convictions Older Than Seven Years In Nevada
Under the federal Fair Credit Reporting Act (FCRA), background screening companies (or consumer reporting agencies) are generally prohibited from reporting certain types of derogatory information that the FCRA considers to be too old to be useful, i.e., obsolete. The…