LexisNexis® Legal Newsroom
Employers Beware: Credit Checks May Expose You to Unwanted Discrimination Claims

Can an employer be sued based on its use of credit checks during hiring? Yes, at least according to the Equal Employment Opportunity Commission (EEOC). There appears to be a new enforcement direction from the EEOC, as evidenced by certain recent court filings. Over the past several months, the agency...

Foley & Lardner: EEOC's Credit Screening Loss Is Not Necessarily an Employer's Win

On January 28, 2013, a federal court in Ohio handed the EEOC a loss when it ruled in favor of several employers for their use of a third party to perform credit checks on candidates for hire. The EEOC claimed that the employers' use of credit histories in making hiring decisions violates certain...

New Federal Bill Would Ban Credit Checks on Employees and Applicants

Yesterday, I discussed some pending federal legislation that would expand the FMLA to cover part-time employees . Now, I hear that another bill introduced in the U.S. House of Representatives, known as the Equal Employment for All Act, would amend the Fair Credit Reporting Act to prohibit the use...

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...

Class Action FCRA Lawsuit Challenging Defendant’s Employment Background Screening Disclosure Form Settles for $6.8 Million

by David M. Gettings , John C. Lynch , David N. Anthony and Alan D. Wingfield In a class action settlement that was recently granted final approval, Publix Super Markets Inc. agreed to pay nearly $6.8 million in a class action lawsuit settlement over background checks under the Fair Credit Reporting...

Food Lion Parent Company Settles Multi-Million Dollar FCRA Background Screening Class Action

by David M. Gettings , Tim J. St. George and Alan D. Wingfield On March 2, the plaintiff’s counsel in Brown v. Delhaize America, LLC submitted an unopposed motion for preliminary approval, seeking Court approval of another Fair Credit Reporting Act class action settlement. Employers should treat...

An Injury Without an Injury? #SCOTUS, Standing, and the Fair Credit Reporting Act.

Yesterday, the Supreme Court heard oral argument in Spokeo, Inc. v. Robins . This case should answer a very important question for employers: Does a plaintiff have standing to bring a lawsuit for a technical violation of the Fair Credit Report Act if the individual suffered no resulting concrete harm...