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Tuesday, February 19, 2019

News Article


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.

No Exceptions! Effect of Exclusion from Participation in Federal Health Care Program

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In the past few years, we have seen an influx of complex regulations and increased litigation in the healthcare industry, making it increasingly difficult for companies to adhere to compliance best practices. Inadequate due diligence and negligent hiring practices in the healthcare sector harms not only an organization, but its patients as well. More often than not, poor hiring decisions are a contributing factor in the rise of lawsuits, medical malpractice claims and subsequent multimillion dollar settlements.

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