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Seventh Circuit: Fair Credit Reporting Act Pre-Adverse Action Requirements Are Actionable

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Employers with IL, IN, WI Employees

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August 29, 2018

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Contrary to the Ninth Circuit’s recently ruling, the Seventh Circuit Court of Appeal stated that an employer’s failure to provide a copy of an applicant’s background check report and notice of rights under the Fair Credit Reporting Act (FCRA) gives an applicant standing to sue the employer, because it amounts to an allegation of being deprived a chance to benefit. Employers are required to provide the report and notice to applicants under the FCRA so that they may have the opportunity to contest the accuracy or completeness of the information.

California: New Bills on Background Checks, Overtime Exemptions, and More

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All Employers with CA Employees in Education or Law Enforcement

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January 1, 2018

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Gov. Brown recently signed a number of new bills that will impact a variety of employment practices, including background check requirements in certain industries, overtime exemption standards, and requirements for obtaining teaching credentials.  A summary of the new bills are as follows:

New York, NY: Final Regulations for “Ban the Box” Go into Effect, Expand Employee Rights

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All Employers with NY Employees

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August 5, 2017

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New York City “banned the box” nearly two years ago with the implementation of the Fair Chance Act (the “Act”).  Recently, the NYC Commission on Human Rights published final regulations that expand upon the enforcement guidance implementing the Fair Chance Act.  These regulations clarify existing obligations and impose additional obligations on employers performing background checks on potential and existing employees.

States of Colorado and Nevada Enact Laws Prohibiting Applicant and Employee Credit Checks

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CO and NV Employers

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July 1, 2013 (Colorado)

October 1, 2013 (Nevada)

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On July 1 and October 1, 2013, Colorado and Nevada will become the ninth and tenth states, respectively, to enact laws restricting the use of credit-related information for hiring or other employment purposes. States that have enacted similar legislation are California, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont and Washington. Listed below are summaries of the new Colorado and Nevada laws.

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EEOC Issues Guidance Regarding Employer Use of Criminal Background Checks

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All Employers, Employment Agencies and Unions

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EEOC Guidance, upon issuance, April 25, 2012

New Notices, January 1, 2013

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On April 25, 2012, the EEOC voted to adopt new guidance for employers that use information on criminal convictions in their hiring process. The EEOC opined that, because arrest and conviction rates are higher among minorities than the general population, employers’ practices of rejecting anyone with a criminal record may have a disparate impact on minority candidates. This guidance applies to criminal convictions, not arrests, in that the EEOC’s position is that arrests that did not result in convictions should not be used in hiring decisions.

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