The Consumer Financial Protection Bureau (CFPB) recently issued a legal Advisory in early July 2022, intending to protect the privacy rights of individuals subject to background checks by third-party consumer reporting agencies (CRAs) under the federal Fair Credit Reporting Act (FCRA). The Advisory also seeks to remind users (e.g., employers) of their obligations under FCRA.
FTC Issues Guidance for Background Screening Companies
Employers regularly turn to background screening companies in order to obtain information/reports about applicants and employees. The Fair Credit Reporting Act (FCRA) applies to companies that sell or provide these background screening reports if such a report meets the FCRA’s definition of a “consumer report.” A consumer report is a report which serves as a
The Growing List of States Protecting Social Media Privacy
As we have previously reported, a growing list of jurisdictions have enacted social media privacy laws applicable to employers. The most recent state to join the list is Maine, which brings the total to 22 states having enacted similar measures.
Under Maine’s law, an employer may not:
- Require or coerce an employee or
Supreme Court to Examine Standing Under FCRA
The U.S. Supreme Court recently decided to hear a case brought under the Fair Credit Reporting Act (“FCRA”) to determine whether individual consumers have standing to sue a consumer reporting agency for statutory violations of the FCRA when no “actual damages” were suffered by the consumer.
The FCRA, like other privacy laws, imposes monetary damages
Baltimore, MD Joins “Ban The Box” Movement
Baltimore, MD has joined the growing list of cities and states around the country implementing “ban the box” legislation. “Ban the box” legislation restricts inquiries regarding an applicant’s criminal history on applications for employment and during job interviews. The EEOC recommends “banning the box” believing the use of conviction records excludes applicants and can disparately
EEOC & FTC Issue Joint Background Check Guidance
The U.S. Equal Employment Opportunity Commission (EEOC) and the Federal Trade Commission (FTC) issued joint informal 
guidance concerning the legal pitfalls employers may face when consulting background checks into a worker’s criminal record, financial history, medical history or use of social media. The FTC enforces the Fair Credit Reporting Act, the law that protects the
Proposed Bill Barring Credit Checks By Employers
Massachusetts Senator Elizabeth Warren recently introduced legislation which would ban employers from conducting credit checks of prospective employees during the hiring process. Known as the Equal Employment for All Act, the measure would amend the Fair Credit Reporting Act to prohibit employers from using consumer credit reports to make employment decisions. Notably, the Act
Colorado Becomes Ninth State to Restrict Use Of Credit Information In Making Employment Decisions
Colorado joins eight other states in restricting employers’ use of credit information in making employment decisions
Continue Reading Colorado Becomes Ninth State to Restrict Use Of Credit Information In Making Employment Decisions
Bans on Employers Requesting Social Media Passwords Continue as New Year Approaches
Michigan becomes fourth state to enact law banning employers from requiring access to employees’/applicants’ social media accounts
Continue Reading Bans on Employers Requesting Social Media Passwords Continue as New Year Approaches
New York Tightens Protections on Social Security Numbers
A New York law, effective December 12, 2012, prohibits businesses and other entities from requiring individuals to disclose or furnish their Social Security Numbers for any purpose, subject to certain exceptions.
Continue Reading New York Tightens Protections on Social Security Numbers