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Background Checks – Minefield For The Unwary

by Annemarie Cleary Pepsi's $3.13 million settlement with the EEOC over an overly broad background check policy should cause all employers who use such checks to re-evaluate their policies. While background checks can provide invaluable information to employers in the hiring process, if used...

Background Checks: Stepped-Up Enforcement of FCRA

By this time, most employers realize that the Fair Credit Reporting Act governs all types of employment-related background checks, not just credit checks. If and to the extent there was ever any question whether Google searches or searches of various social media sites constitute "background checks"...

FTC and EEOC Issue Guidance on FCRA and Background Checks

by Ethan Ostroff and Bryan Haynes Hiring decisions are among the most important choices for any employer, but the process can be complex. For the first time, the Federal Trade Commission (FTC) and the Equal Employment Opportunity Commission (EEOC) have jointly issued two short guides on employment...

Do as I Say: The EEOC and Credit Checks

On October 10, 2010, the EEOC held a public hearing on the impact that the use of credit history has on employee selection and potential discrimination. The press release summarizing the hearing carried the by-line that some witnesses said the practice can have a disparate impact on minorities and is...

Sixth Circuit Sends Strong Signal to EEOC in Affirming Dismissal of Systemic Lawsuit

Last January, a Cleveland federal-court judge dismissed a race discrimination lawsuit brought by the EEOC against Kaplan Higher Learning. In that case, the EEOC challenged Kaplan’s use of credit reports in its hiring process as having a systemic disparate impact based on race. To support its claim...