Tag Archives: Class Action Lawsuits

Court Finds Sending Copy of Background Check and Summary of Rights Satisfies FCRA Pre-Adverse Action Requirements

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Written By ESR News Blog Editor Thomas Ahearn

A Pennsylvania Court has found in the case of Wright v. Lincoln Property Company that an employer who considered rejecting an applicant based on a background check and followed “pre-adverse” action rules under the federal Fair Credit Reporting Act (FCRA) that requires employers to send applicants a copy of their background checks and a summary of rights under the FCRA prior to taking “adverse action” is only obligated to send the applicant these documents and whether the applicant receives them is irrelevant. Continue reading

Safe Hiring Expert Attorney Lester Rosen to Present Session at HR West 2017

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Written By ESR News Blog Editor Thomas Ahearn

Attorney Lester Rosen, author of “The Safe Hiring Manual” and CEO of San Francisco, California-area background check firm Employment Screening Resources® (ESR), will present a live session entitled “Avoiding Lawsuits and Bad Hires with Effective Background Screening” on Monday, March 6, 2017, from 3:00 p.m. to 4:30 p.m., at HR West 2017 at the Oakland Convention Center in Oakland, California. For more information about HR West 2017, please visit http://hrwest.org/. Continue reading

UPS Faces FCRA Class Action Lawsuit Over Alleged Background Check Violations

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Written By ESR News Blog Editor Thomas Ahearn

United Parcel Service (UPS) of America Inc. faces a class action lawsuit that claims UPS allegedly violated the federal Fair Credit Reporting Act (FCRA) by using background checks for employment without providing the results to job applicants or employees, according to a report on the Top Class Actions website. Continue reading

Appeals Court Rules Employer Willfully Violated FCRA with Liability Waiver on Background Check Disclosure Document

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Written By ESR News Blog Editor Thomas Ahearn

On January 20, 2017, the Ninth Circuit Court of Appeals ruled that employers can “willfully” violate the federal Fair Credit Reporting Act (FCRA) if they provide job applicants with a disclosure that a background check may be obtained for employment purposes that also includes a liability waiver for employers and others. Continue reading

Starbucks Faces Class Action Lawsuit for Allegedly Inaccurate Background Check

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Written By ESR News Blog Editor Thomas Ahearn

Starbucks Corp. is facing a class action lawsuit filed by a Colorado man who claims he was denied a job based on an allegedly inaccurate background check and is suing the coffeehouse chain for violations of the federal Fair Credit Reporting Act (FCRA), according to a report from Top Class Actions. Continue reading

Court Finds Complete and Up To Date Requirement of FCRA Does Not Include Accuracy Component

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Written By ESR News Blog Editor Thomas Ahearn

A District Court in Pennsylvania has ruled that the “complete and up to date” requirement of the federal Fair Credit Reporting Act (FCRA) that consumer reporting agencies (CRAs) must follow when performing background checks does not include an “accuracy” component as well. Continue reading

FCRA Lawsuits Will Remain a Potential Threat to Employers After Supreme Court Decision in Spokeo Case

 

Written By ESR News Blog Editor Thomas Ahearn

On May 16, 2016, the Supreme Court of the United States ruled in the case of Spokeo, Inc. v. Robins that consumers must prove “concrete injury” in class action lawsuits for alleged “bare” violations of a federal statute. However, the fact that class action lawsuits involving the federal Fair Credit Reporting Act (FCRA) that governs background checks in the U.S. will remain a potential threat to employers despite recent court rulings dismissing FCRA lawsuits and citing the Spokeo decision as the reason is Trend Number 8 in the Employment Screening Resources® (ESR) 10th annual ‘ESR Top Ten Background Check Trends’ for 2017. Continue reading

FCRA Lawsuit against Bank of America over Background Checks Dismissed

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Written By ESR News Blog Editor Thomas Ahearn

A California federal judge has dismissed a class action lawsuit filed against Bank of America Inc. and other defendants over alleged violations of the federal Fair Credit Reporting Act (FCRA) during background checks on contract workers by ruling the plaintiff lacked standing to bring any claims, according a blog on the Consumer Financial Services Law Monitor website. Continue reading

JPMorgan Chase Granted Summary Judgment in FCRA Class Action Lawsuit over Background Checks

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Written By ESR News Blog Editor Thomas Ahearn

The U.S. District Court for the District of Arizona has granted JPMorgan Chase a summary judgment motion in a class action lawsuit that claimed the banking and financial services company violated the Fair Credit Reporting Act (FCRA) when obtaining Federal Bureau of Investigation (FBI) background checks, according to an article on the website of international law firm Troutman Sanders LLP. Continue reading

Employers Should Not Let Guard Down on FCRA Compliance in Wake of Supreme Court Spokeo Ruling

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Written By ESR News Blog Editor Thomas Ahearn

Employers should not “let their guard down about complying with background screening rules” such as the federal Fair Credit Reporting Act (FCRA) despite recent court rulings such as the dismissal of a proposed FCRA class action lawsuit against transportation network company Lyft, Inc. by a federal judge who cited a decision by the Supreme Court in the case of Spokeo, Inc. v Robins as a reason for the decision, according to an article on the Society for Human Resource Management (SHRM) website. Continue reading