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Fair Credit Reporting Act

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August 15, 2017
Ninth Circuit Revisits Article III Standing For An Alleged FCRA Violation

On August 15, 2017, the U.S. Court of Appeals for the Ninth Circuit issued another opinion in the saga of Robins v. Spokeo, Inc.—a case dealing with the question of what violations of a federal statute are sufficient to confer Article III standing.  The plaintiff alleges Spokeo violated the federal Fair Credit Reporting Act (“FCRA”)…

July 17, 2017
California Court Certifies FCRA Class of Over 40,000 Applicants

As Littler has reported, the number of class action lawsuits against employers alleging violations of the Fair Credit Reporting Act (FCRA) has continued to spike.  Most lawsuits proceed in federal court, but the FCRA allows plaintiffs to file in either federal or state court.  On July 13, 2017, a class action was certified in state…

June 30, 2017
Federal District Court Holds Employer to its Promise in FCRA “Pre-Adverse Action” Notice

The U.S. District Court for the Eastern District of Wisconsin recently held that an employer potentially violated the Fair Credit Reporting Act (FCRA) when it provided the employee with three days to dispute information contained in a background report and not the five it promised in the pre-adverse action notice.1  The court’s opinion is a…

May 2, 2017
FTC Issues “Advice” on Background Check Disclosure and Authorization Forms

On April 28, 2017, the Federal Trade Commission (FTC) issued a blog article entitled “Background checks on prospective employees: Keep required disclosures simple.”1  The FTC is one of the two federal agencies with oversight of the Fair Credit Reporting Act (FCRA); the other one is the Consumer Financial Protection Bureau (CFPB).  The FCRA imposes specific…

January 25, 2017
Ninth Circuit is the First Appellate Court to Rule on “Extraneous Text” in a FCRA Background Check Disclosure

On January 20, 2017, the U.S. Court of Appeals for the Ninth Circuit became the first appellate court to rule on the lawfulness of a liability waiver in a Fair Credit Reporting Act (FCRA) disclosure.  In Syed v. M-I, the Ninth Circuit ruled that an employer acted willfully in violation of the FCRA when it…

May 17, 2016
U.S. Supreme Court Holds Not Every Violation of a Federal Statute is a Ticket to File a Federal Court Lawsuit

On May 16, 2016, the U.S. Supreme Court issued its long-awaited opinion in Spokeo, Inc. v. Robins, a case raising the procedural question whether any and all violations of a federal statute are sufficient for a plaintiff to file a lawsuit in federal court (i.e., satisfy the “injury-in-fact” requirement for standing under Article III of…

May 11, 2016
FTC Releases Updated FCRA Guidance On Background Checks

On May 10, 2016, the Federal Trade Commission (FTC) released a new publication related to background checks and the Fair Credit Reporting Act (FCRA) titled What Employment Background Screening Companies Need to Know About the Fair Credit Reporting Act.1  As the name suggests, the publication surveys the obligations that consumer reporting agencies (background check companies…

January 14, 2016
Federal Courts Increase Scrutiny of Employer Compliance with the FCRA’s Adverse Action Requirements

In the last two years, the number of employment class actions under the federal Fair Credit Reporting Act (FCRA) has ballooned. Most of the cases reported in the media have involved challenges to an employer’s compliance with the FCRA’s disclosure and authorization requirements.  However, recent class action filings show that the plaintiff’s bar also is bringing…

August 1, 2014
The Swelling Tide of Fair Credit Reporting Act (FCRA) Class Actions: Practical Risk-Mitigating Measures for Employers

The swelling tide of class action litigation against employers under the Fair Credit Reporting Act (FCRA) is unmistakable. It cuts across all industries, including retailers, restaurant chains, theatre chains, manufacturers, financial institutions and transportation companies. To illustrate how the threat to employers is concrete, not merely hypothetical, close to a dozen nationwide class actions were…

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