FCRA lawsuits increased 4.3% from 2017 to 2018 with Amazon, Delta Airlines and Uber being among some of the top organizations paying out millions. The top three violations occur when the employer:
1. Fails to “separate” the Disclosure & Authorization forms as they are to be considered “stand-alone”.
2. Fails to provide either pre-adverse and/or post-adverse action notices, and
3. Neglects to inform the applicant of his/her FCRA rights.
More laid-off workers will have to take drug tests in order to qualify for unemployment benefits under a new rule passed by the Department of Labor on October 4 and becomes effective November 4, 2019. Lawyers are saying the rule is unconstitutional. To read more, go to https://www.vox.com/identities/2019/10/4/20893225/trump-unemployment-drug-testing-rule
Michigan’s unemployment rate now compared to 10 years ago when we were in a recession is astounding.
The first week in September showed in the most recent available data of 3,988 initial claims put in and there were 35,946 people receiving unemployment benefits. Back in January on 2009, there were 363,212 people receiving unemployment benefits in Michigan.
Forecasters are wondering if Michigan is in the early stages of another recession. With 1200 supplier layoffs due to the GM strike going on right now, who knows what the future holds.
Fingerprinting should not be your only source for information!
Although fingerprinting is required in many job positions within certain industries, it was not meant for pre-employment, and there are downfalls in this type of screening.
For one, fingerprinting is not always done during an arrest, and if it was conducted, reported to the FBI. Also, these databases most often do not contain complete and up to date records on an applicant’s criminal history. The report will tell you information on the type of arrest, but not the disposition, which means the courts final determination of the case which is what employers are looking for when performing pre-employment screenings.
Most importantly, fingerprint-based background checks DO NOT comply with FCRA and EEOC regulations and take longer than name-based background checks.
On August 26, 2019, it was announced by an Oklahoma judge that Johnson & Johnson is ordered to pay $572,102,028 of the asking $17 billion to help the crisis and the recovery of Opioid addicts in the state.
The state argued that J & J marketed opioid drugs to doctor’s offices knowing their addictiveness and the risk of addiction. Opioids are marketed to physicians by pharmaceuticals companies often showing up before they open giving out free trials and samples and offering incentives for the purchase and push of the prescription pills.
According to the Center of Disease Control and Prevention, 70,237 deaths were reported in 2017 due to overdosing. It is only imagined what that number is today.
Pay Equity Laws are gaining momentum faster than Ban the Box laws. Pay Equity is equal pay for work of equal value. The Pay Equity Act prevents employers from asking about candidates’ prior salary history in an effort to eliminate gender-based salary inequalities. Seyfarth Shaw has put together a state by state guide.
https://www.seyfarth.com/dir_docs/publications/Seyfarth-50StatePayEquityDesktopReference-2019.pdf
“Consumer report” is the name of the background check document. A consumer report includes more information than traditional Credit Reports
A consumer report is a document containing information that bears on a consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living
Under the FCRA, these reports may be used to establish the consumer’s or applicant’s eligibility for:
employment; or
other purposes allowed by the FCRA
The consumer report may include arrest information, criminal records from other states, aliases, employment verification reports, and addresses and phone numbers used by the applicant
With 90% of employers conducting background checks, it’s imperative to understand the FCRA Rules and Regulations. CRA’s, as well as employers, must understand these rules to avoid becoming part of the $174+ million paid out in Class Action Lawsuits. Under Legal Resources on the bottom of the home page of the website is the latest FCRA for your reference if needed.
Another lawsuit for an FCRA violation. 7-Eleven reaches a settlement of nearly $2 million for not using a stand-alone notice when conducting background checks on applicants. I can’t stress the importance of separate Disclosure & Authorization forms when submitting a background check. Lawsuits like this pertain to tenant screenings as separate forms should be used as well.
The FTC rescinds FCRA model forms and disclosures that are no longer necessary after the issuance of the Dodd-Frank Act.
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