Legislative Alert

ENACTED LEGISLATION

CONNECTICUT: Connecticut enacts “Ban the Box” law

Summary: Connecticut enacted a “Ban the Box” law which will prohibit employers from inquiring about a prospective employee’s prior arrests, criminal charges or convictions on an initial employment application unless the employer is required to do so by an applicable state or federal law, or a security or fidelity bond or an equivalent bond is required for the position.

Impact(s): Connecticut employers

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LOUISIANA: Louisiana governor signs “Ban the Box” law

Summary: The Governor of Louisiana signed House Bill 266 which prohibits a state employer from inquiring about a prospective unclassified employee's criminal history until after an interview or a conditional offer of employment is made.

Impact(s): Louisiana state employers

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PROPOSED LEGISLATION

FEDERAL: U.S. Rep. Waters introduces “Comprehensive Consumer Credit Reporting Reform Act of 2016”

Summary: Rep. Maxine Waters has introduced the “Comprehensive Consumer Credit Reporting Reform Act of 2016” to amend the Fair Credit Reporting Act. The bill, if passed, would shorten the length of time that most negative information would remain on a credit report to four years, as well as removing paid and settled debts. The bill would also provide expanded access to free credit scores and reports; give consumers new rights in disputing information on a credit report; restrict the use of credit for employment screening; and provide the Consumer Financial Protection Bureau with the ability to monitor the development of credit scoring models.

Impact(s): FCRA compliance – for general legal review

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COURT OPINIONS

U.S. DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA: Court refuses to dismiss potential FCRA class-action suit against Waffle House

Summary: A federal judge refused to dismiss a potential FCRA class-action suit against Waffle House ruling that there are facts in dispute that belong before a jury. The case arises from Waffle House’s alleged use of a paid search website called Public Data, a company that provides background check information to employers but maintains that it is not a consumer reporting agency and thus is not subject to the FCRA.

Impact(s): FCRA compliance – for general legal review

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U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO: Court dismisses FCRA lawsuit finding there was no concrete consequential damage

Summary: Plaintiffs filed an FCRA case against Ohio State University (OSU), arguing that OSU provided applicants with a disclosure and authorization form that improperly included extraneous information, such as a liability release, in violation of the FCRA’s “standalone” disclosure requirement. Plaintiffs were ultimately hired by OSU, but they filed suit claiming that their privacy and statutory rights were violated. Relying on the Supreme Court’s Spokeo ruling, the Ohio federal district court granted the Defendants’ motion to dismiss, finding that “Plaintiffs admitted that they did not suffer a concrete consequential damage as a result of OSU’s alleged breach of the [FCRA]” and thus holding that “without a concrete and particularized injury-in-fact, there is no Article III standing in this Court.”

Impact(s): FCRA compliance – for general legal review

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