The Fair Credit Reporting Act regulates more than credit. It includes provisions that govern employers who obtain consumer reports on applicants in connection with the application process. One such provision deals with the disclosure that an employer must provide to an applicant before obtaining a background check. According to the FCRA, the employer must provide
Background Screening
Avis Settles FCRA Background Check Lawsuit for $2.7 Million
On November 17, car rental company Avis filed its memorandum in support of final approval of a $2.7 million class action settlement to resolve Fair Credit Reporting Act claims related to its background screening practices. The case is Angela Fuller v. Avis Budget Car Rental LLC, et al., No. 2:15-cv-03856, pending in the U.S.…
Supreme Court Declines to Hear Appeal of Ninth Circuit Decision on FCRA Willfulness in Disclosure Forms
One of 2017’s more significant Fair Credit Reporting Act court opinions was the Ninth Circuit’s January 20 decision in Syed v. M-I, LLC, a putative FCRA class action. In its decision, the Ninth Circuit Court of Appeals held that a prospective employer willfully violated the FCRA by including a liability waiver in its background…
Arizona Governor Signs Executive Order Banning the Box
On November 6, Arizona governor Doug Ducey signed an executive order making Arizona the most recent state to adopt a “ban the box” law. The state joins Pima County and Tucson – Arizona localities that have already joined the “ban the box” movement.
Under the new policy, state agencies will delay questions related to an…
Court Grants Summary Judgment to Thomson Reuters; Company Does Not Qualify as Consumer Reporting Agency
In Kidd v. Thomson Reuters, plaintiff Lindsay A. Kidd brought a Fair Credit Reporting Act putative class action claim against mass media and information firm Thomson Reuters after she was allegedly denied a job with the Georgia Department of Public Health based on criminal history information obtained by the Department from Thomson Reuters’ subscription-based…
California’s Statewide “Ban-The-Box” Law To Go Into Effect January 2018
On October 14, 2017, California became the most recent state to adopt a “ban-the-box” law. The law, signed by Governor Jerry Brown, goes into effect on January 1, 2018, prohibiting pre-offer inquiries regarding applicants’ conviction histories, and regulating employers’ decisions to deny employment to an applicant based on his or her convictions. This law is…
District Court Rejects FCRA Class Action Settlement for Lack of Standing
In Robertson v. Allied Solutions, LLC, plaintiff Shameca Robertson brought a class action claim in the Southern District of Indiana against Allied Solutions under the Fair Credit Reporting Act. In the complaint, Robertson asserted two claims against Allied Solutions: (1) that the company failed to provide her with an FCRA-compliant disclosure informing her that …
New York Passes Law Overhauling Process for Sealing Old Felony Convictions
Effective October 7, New York law now authorizes state courts to seal nonviolent criminal convictions that are more than ten years old. The newly enacted New York Criminal Procedure Law § 160.59 allows criminal defendants to apply to seal one felony and one misdemeanor conviction, or two misdemeanor convictions, for offenses other than violent and…
District Court Denies Motion to Strike in FCRA Background Check Class Action
In Fosbrink v. Area Wide Protective, Inc., William Fosbrink sued defendant Area Wide Protective in a class action complaint for allegedly violating the Fair Credit Reporting Act’s provisions regarding employment background checks. According to Fosbrink, Area Wide violated the FCRA in three ways: (1) it failed to provide him with a stand-alone disclosure informing…
Starbucks Hit with FCRA Class Action
Starbucks Corp. has been sued in a proposed class action in the Northern District of Georgia for alleged violations of the Fair Credit Reporting Act with its employment application process. Plaintiff Kevin Wills claims Starbucks rejected job applicants based on consumer reports without first providing a copy of the reports to the applicants and notifying…