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Employer Law Report

Tag Archives: FCRA

The FCRA is the new FLSA

Posted in Workplace Privacy

Recent multi-million dollar settlements highlight the importance for employers of complying with the Fair Credit Reporting Act (FCRA). They also highlight that, when it comes to class action lawsuits in the employment-law context, the FCRA is the new FLSA!

The FCRA has very specific requirements employers must comply with if they engage a background check service providers (referred to as “Consumer Reporting Agencies” (CRAs) in the FCRA) to compile background reports on applicants or employees. These types of reports include credit reports, criminal background reports, and other reports that have any bearing on someone’s moral character or reputation. We have …


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Happy Birthday to the FACTA! The Often Forgotten Law that Imposes Obligations and Provides Helpful Exceptions for Employer Background Checks and Workplace Investigations

Posted in Other Articles, Traps for the Unwary, Workforce Strategies, Workplace Privacy

It should be old hat by now: Employers who use a third party to conduct a background check on an applicant or employee for employment purposes must comply with the Fair Credit Reporting Act (FCRA). But what many employers do not know, or may have forgotten, is that the Fair and Accurate Credit Transactions Act (FACTA) also imposes upon them some obligations when conducting a background investigation. (A background of the FCRA’s general requirements for employers is necessary to understand the FACTA’s implications, which we have outlined for you here.)

So what is the FACTA? As of December 4, …


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Not So Fast … CFPB Issues Revised Forms for FCRA Compliance by January 1, 2013, First Ones Contained Typos and Other Errors

Posted in Traps for the Unwary, Workforce Strategies, Workplace Privacy

As we reminded you last month here, the Consumer Financial Protection Bureau ("CFPB"), the agency that has enforcement responsibility over the Fair Credit Report Act ("Act"), revised the forms which employers must use to comply with the FCRA, effective January 1, 2013. There was only one little problem with the forms the CFPB provided for use: They contained various typos and technical errors that the CFPB now has recognized in its Supplementary Information in the November 14, Federal Register Notice.

The forms at issue:

  • The Summary of Consumer Identity Theft Rights;
  • Summary of Your Rights Under the

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Complying with the FCRA Amendments Before January 1, 2013 – a Step-By-Step Guide

Posted in EEO, Traps for the Unwary, Workforce Strategies, Workplace Privacy

By now, you should know that the Equal Employment Opportunity Commission ("EEOC") has issued “Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions”, which is designed to restrict criminal background checks by employers, but you may not know that enforcement responsibility for the Fair Credit Reporting Act ("FCRA") has been transferred from the Federal Trade Commission to the recently created Consumer Financial Protection Bureau ("CFPB").

The FCRA, of course, is the federal law that imposes requirements on employers who use third party Consumer Reporting Agencies ("CRA’s") to obtain “consumer reports" (i.e., background check, reference check, …


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Federal Court: FCRA Does Not Apply To Independent Contractor Relationships

Posted in Workplace Privacy

Here is one more potential advantage of using independent contractors rather than employers that so far has flown below the radar screen.  According to a federal district court in Wisconsin, the Fair Credit Reporting Act’s disclosure obligations do not apply to independent contractor relationships.

When EMS Energy Marketing Service, Inc., terminated Phillip Lamson based on the results of a background check, it failed to provide him with a copy of the report or the written description of his rights under the FCRA as required by the Federal Trade Commission.  Lamson sued, alleging that his termination violated FCRA.  The Court concluded, …


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