Anti-discrimination Suit Raised Against New York Insurance Company

If you’re an employer that uses background reports, compliance is a priority issue. Federal, state, and local consumer reporting laws are not the only laws to consider. From ban the box to anti-discrimination, there are many other types of laws for employers to keep in mind. All are important to consider before obtaining or using a background report.

A recent lawsuit filed against the New York Life Insurance Company serves as a good reminder. The complaint alleges violations of both the New York Human Rights Law (“NYHRL”) and New York City Human Rights Law (“NYCHRL”). Let’s review what the lawsuit says.

Allegations Against New York Life

The complaint against New York Life alleges the following:

• That New York Life denied employment to qualified job applicants because of arrests that never resulted in a conviction.
• By taking adverse action based on arrests that did not result in a conviction, New York Life violated both the NYHRL and the NYCHRL. The complaint makes the claim that “both New York State and City make it per se illegal for an employer to inquire about or deny employment because of arrests that were resolved in an individual’s favor.”
• That New York Life’s practices have a negative societal effect. The complaint states that “discrimination on the basis of arrest record disproportionately impacts New Yorkers of color…”

Of course, these remain only allegations until the lawsuit is resolved. Verified Credentials will monitor this case as the litigation process goes on.

Keeping Anti-Discrimination Laws a Top Priority

Consumer reporting laws, like the FCRA, often steal the spotlight for background check compliance. Some lawsuits serve as a reminder of other compliance matters employers should care about.

In this case, the lawsuit filed against New York Life reminds employers about obligations beyond consumer reporting laws.

Monitoring and following anti-discrimination laws are just as important, as New York Life is finding out.

If you have any questions about background screening compliance, it is highly recommended that you speak with trusted legal counsel.