Illinois Becomes the Second State to Enact Broader Regulations on AI
Illinois Governor J.B. Pritzker signed House Bill 3773 into law on August 9, 2024, expanding the state’s regulations on the use of artificial...
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Verified Credentials Sep 5, 2019 12:00:00 AM
Last updated on 12-1-2023.
Employers should be wary of the increasing number of Fair Credit Reporting Act (FCRA) lawsuits brought against them. The FCRA is full of potential obligations for employers that obtain FCRA regulated background reports (called “consumer reports” under the FCRA) on their applicants and employees. It can be challenging for employers to determine whether they are meeting all their obligations under the FCRA (as well as under comparable state and local laws).
In a recent case, Schofield v. Delta Air Lines, Inc., No. 3:18-cv-00382-EMC, USDC, ND Cal., Feb. 27, 2019, Delta Air Lines, Inc. (Delta) was accused of, among other things, obtaining consumer reports on applicants and employees without providing them with proper disclosures and without receiving appropriate authorizations in violation of the FCRA (as well as California state law). The lawsuit alleged that Delta’s disclosures were not clear and unambiguous, contained extraneous information, and were not in stand-alone documents.
Some quick facts about the lawsuit, and the settlement agreement:
This case, with its large settlement amount, should serve as a cautionary tale for all employers: if you are going to obtain consumer reports for employment purposes, be sure that you:
Verified Credentials will continue to notify you of any significant changes in the laws, or major lawsuits, surrounding background checks as it becomes aware of them. However, as always, you should discuss your background screening program with your legal counsel to make sure that you remain on the right side of the developing area of background screening law.
Illinois Governor J.B. Pritzker signed House Bill 3773 into law on August 9, 2024, expanding the state’s regulations on the use of artificial...
Montana has joined the growing list of consumer data privacy laws enacted throughout the country, creating new guidelines for consumer data privacy. ...
Signed into law on September 12, 2024, New Jersey enacted a new background check bill that mandates criminal history background checks for a broader...
The recent preliminary approval of a class action settlement in California highlights the importance of using multiple identifiers in background...
You’re probably aware of the federal Fair Credit Reporting Act (“FCRA”) disclosure and authorization requirements for employers that want to obtain...
Does your team live or work up and down the Jersey Shore? Then there are some state-specific disclosure requirements to keep in mind. That’s right, ...