Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: September 16, 2015
The Firm
201-896-4100 info@sh-law.comThe number of lawsuits against Uber, Inc. appears to be growing almost as quickly as the company’s app-based car service. The latest lawsuit involves the company’s use of pre-employment background checks.
The proposed class-action suit, which was filed in New Jersey federal court, alleges that Uber violated the Fair Credit Reporting Act (FCRA) by denying applicants the opportunity to dispute the information contained in the reports of their pre-employment background checks. The company is facing similar suits in California.
According to the complaint in Cuccinello v. Uber, Uber contracted with consumer reporting agency Hirease Inc. to obtain background reports on prospective drivers in order to conduct thorough pre-employment background checks. The plaintiffs, Joseph Cuccinello and James Brooks, allege that they were denied employment based on the content of their reports, but were never provided with copies of the reports or given the opportunity to dispute information contained in their criminal, financial and employment histories. The suit further alleges that the online forms in which they consented to the background checks “unlawfully attempted to obtain future protection for defendants for any unlawful actions, and included other limitations on consumer protections and other extraneous language.”
As we have discussed in prior posts, the FCRA has consistently been a litigation trap for unwary businesses. The federal statute imposes several requirements on employers who wish to conduct pre-employment background checks on job applicants, such as obtaining credit reports and criminal records.
Among other legal requirements under the FCRA, employers must notify applicants that they might use information in their consumer report for decisions related to their employment and obtain written authorization to obtain the reports. This written disclosure must be in a stand-alone format separate from the job application and not contain any other content, although it may be contained with the authorization.
Prior to rejecting a job application (or taking any other adverse employment action) based on information found in these pre-employment background checks, employers must give the applicant or employee a notice that includes a copy of the consumer report the employer relied on to make the decision, as well as a copy of A Summary of Your Rights Under the Fair Credit Reporting Act.
As highlighted by the Uber suit, the failure to take the above compliance steps can result in a costly lawsuit. The FCRA authorizes statutory damages of up to $1,000 per class member as well as punitive damages, actual damages and attorney’s fees. Accordingly, it is wise to review your FCRA compliance, particularly with respect to online applications.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!