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The Legal Stuff
BT Currents - Hot Topics in Employment Law
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20 Sep New FCRA Form for Pre-Employment Background Checks Starts Sept. 21

Employers who routinely use third party credit reporting agencies for pre-employment background screening have a new requirement due to recent changes to the Fair Credit Reporting Act (FCRA). Starting September 21, 2018, employers that use background checks must notify job applicants and employees of their rights under the FCRA using a new “Summary of Consumer Rights” form. Failure to provide the correct notification can expose employers to legal risk, including class action litigation. The primary change to the form relates to disclosures regarding the consumer’s…

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29 Mar Liability Waiver in Pre-Employment Disclosure Form is Unlawful, Says Ninth Circuit

  In Syed v. M-I, LLC, the U.S. Court of Appeals for the Ninth Circuit recently held that a prospective employer violated the disclosure requirements of the Fair Credit Reporting Act (FCRA) by including a liability waiver in a job applicant’s pre-employment form. The provision of the FCRA at issue – 15 U.S.C. § 1681b(b)(2)(A) – requires prospective employers to disclose “in a document that consists solely of that disclosure” that they may obtain a job applicant’s consumer report as part of the employment application…

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13 Mar EEOC and FTC Team up to Offer Guidance on Employee Background Checks

The U.S. Equal Employment Opportunity Commission (“EEOC”) and the U.S. Fair Trade Commission (“FTC,” the commission responsible for enforcing the Fair Credit Reporting Act) have co-published two technical assistance publications – one aimed at employers and one aimed at employees and applicants – explaining how their rules apply to background checks used for hiring, retention, promotion, or reassignment purposes.   The EEOC confirmed that it is legal to ask questions about an applicant’s background as long as the questions do not discriminate on the basis of…

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