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Thursday, May 28, 2020

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Update: Dollar General and Equal Employment Opportunity Commission (EEOC) Resolve 6-Year Long Suit Involving Background Check Process! A Good Reminder to Evaluate Your Screening Process!

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We alerted you in early November to the motion filed to settle this suit. On November 18, 2019, the EEOC announced that the litigation is settled. While Dollar General is steadfast that their process is legal, and admits no wrongdoing, the settlement includes strict criteria to follow going forward concerning their screening process. This lawsuit is a good reminder to review your screening process to ensure compliance with Federal, State and local laws. We’ve compiled some great resources to assist you here.

Dollar General and Equal Employment Opportunity Commission (EEOC) File Motion to Settle Suit, Originally Filed in 2013, Involving Background Check Process!

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Law 360 reports that Dollar General and the EEOC filed a motion to settle a suit that was originally filed more than 6 years ago. In the suit the EEOC claims Dollar General’s applicant screening process creates disparate impact on black applicants. The Law 360 post states that Dollar General defends their process and denies any discrimination against African-Americans. The article goes on to say that Dollar General’s belief is that the EEOC claims are unfounded, but they are happy to have a resolution, and will continue to employ steps to ensure the safety of property, customers and employees. Law 360 also reports that the motion filed includes a $6 million settlement payment by Dollar General. The case is Equal Employment Opportunity Commission v. DolGenCorp LLC (1:13-cv-04307), District Court, N.D. Illinois, and more information can be found here.

Reminder to Employers – Avoiding Accidental FCRA Liability When Screening Prospective Employees

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JD Supra posted this article discussing accidental FCRA liability when conducting background checks. It’s a straightforward explanation and a guide to employers who screen prospective employees.

This article, posted by JD Supra and Perkins Coie back in April 2019, is a good complement to their latest article noted above. The post does a great job of outlining FCRA requirements, steps employers should take when screening new hires, highlights of two Ninth Circuit decisions, perils of violating the FCRA, and takeaways for employers!

Background Check Disclosures Still Being Litigated. So Far - This is a Very Hot Employer Topic of 2019!

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OPENonline has posted multiple times about the current litigation frenzy surrounding employer background screening disclosures. But the language included in disclosures is already shaping up to be one of the hottest employer litigation topic of 2019.

Case in point is the recent Ninth Circuit ruling in Gilberg v. California Check Cashing Stores, LLC, No. 17-16263, 2019 WL 347027 (9th Cir. 2019). Since the decision on January 29, 2019, we haven’t been able to count the slurry of articles, emails, and posts covering the ruling.

Retail giant Walmart faces a class action lawsuit alleging Fair Credit Reporting Act violations by conducting unauthorized background checks. The class could cover as many as 5 million applicants!

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In recent months, we have seen a large uptick in FCRA class action lawsuits. If you are subscribed to our mailing list then you may recall the Stanford class action filed in October 2018, the PetCo class settlement in November 2018, and the Delta Airlines proposed settlement earlier this month. We can now add another to the list and this one is, by far, the largest FCRA class action we’ve seen in recent memory.

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