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FCRA Class Action Updates: Paramount and Whole Foods

You’ve seen the headlines about the many FCRA-related class action lawsuits brought against a number of large, well-known employers. In today’s blog, Corporate Screening provides some updates on FCRA class action lawsuits brought against Paramount Pictures and Whole Foods.  While each case is unique, the contradictory court decisions highlight the controversy regarding technical violations of the FCRA.  A controversy you don’t want to be stuck in the middle of.
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Update: LinkedIn Avoids FCRA Class Action Lawsuit

  In October, a class action lawsuit was filed against LinkedIn, claiming the company acted as a credit reporting agency by providing premium users (potential employers) with “Trusted Reference” reports. The plaintiffs alleged that LinkedIn violated the FCRA because it did not get consent from consumers for the report, nor did it allow consumers to dispute the information contained in the reports, therefore violating the FCRA.
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Food Lion Parent Company Settles FCRA Lawsuit for $3 Million

The parent company of Food Lion has recently joined the ranks of companies paying large dollar amounts to settle a Fair Credit Reporting Act (FCRA) class action lawsuit. On March 2, 2015, a preliminary motion was filed by the plaintiffs in Brown v. Delhaize America, LLC, (the parent company of Food Lion) in which the plaintiff’s attorneys are seeking the court’s approval of a $3 million FCRA class action settlement.
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Background Checks Are a Growing Trend in Youth Sports

  We've blogged a number of times on our VerifyStudents blog about the growing number of colleges and universities that have implemented background check policies designed to protect minors on their campuses. Organizations involved with student sports also appear to be joining in on this trend.
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New Year, New FCRA Class Action

  Welcome to a new year. It didn’t take long before an FCRA class action lawsuit was filed. Deadline.com reports that Paramount Pictures is the latest to be slapped with a lawsuit that alleges the company violated the Fair Credit Reporting Act (FCRA). The plaintiffs allege that the company’s disclosure document violated the FCRA because it was not a stand-alone document.
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Safer Children: DoD Strengthens Background Checks for Child Care Providers

  Officials from the Department of Defense (DoD) are making criminal background checks tougher for those who interact with children. The Military Times reports that the proposed regulation “specifies that criminal history background checks must be initiated and overseen by people who are trained and vetted experts — responsible for personnel security or for human resource functions. Program managers, supervisors and others who don't routinely perform those duties would be prohibited from managing these background checks. 
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Ride Sharing: Are Stricter Regulations Needed?

The latest trend in transportation is ride sharing, and a growing number of people are using their smart phones to order a ride. By downloading an app from companies such as Uber, Lyft or SideCar, users request a ride and then a driver arrives to pick them up. Drivers use their personal cars, and payment is cashless, since it is done directly through the app using a credit card linked to each account.
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Reducing Overcrowding in California Prisons?

  This fall, California voters will vote on a move to reduce prison crowding. Fox News reports that a measure called Prop 47 would “dramatically change how the state treats certain “nonserious, nonviolent” drug and property crimes, by downgrading them from felonies to misdemeanors.” It would also “allow those currently serving time for such offenses to apply for a reduced sentence, as long as they have no prior convictions for more serious crimes like murder, attempted murder or sexual offenses.”
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Increased Risk for Taxpayers?

  A recent audit of the Internal Revenue Service revealed that taxpayers were exposed to “increased risk of fraud and identity theft” after the agency handed private information over to contractors who had not undergone background checks. The Washington Post and WBAY reported that the IRS:
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Changing Background Screening Laws Affect Seniors

  A recent article in Senior Housing News serves as a good reminder that changes in laws regarding background screening can impact seniors. In most cases, federal and state laws require employers to do background checks on their employees who provide direct patient care. The laws apply to “licensed communities, such as assisted living, memory care, skilled nursing and these components of continuing care retirement communities (CCRCs).” On the other hand, independent living facilities are generally unlicensed in most states, and are not subject to federal background check laws.
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