- Written by Gregory Blueford
As previously reported, the United States Supreme Court is set to review the legality of arbitration agreements that bar employees from pursuing class action lawsuits. However, the Supreme Court told lawyers involved in the three cases that the Court would not hear the cases until the 2017 court term, which begins in October. By October, the Court should have its full complement of judges, assuming that nominee Neil Gorsuch is ultimately confirmed by the Senate. This delay nearly guarantees that a final decision will be made within the next year. Observers were worried that a tie on the issue was inevitable with the current eight-member court and would continue the confusion regarding the enforceability of class action waivers.
- Written by Jacquelyn E. Larson
The Ninth Circuit Court of Appeals became the first court of appeal to rule on issues pertaining to pre-employment background checks class actions brought under the Fair Credit Reporting Act (“FCRA”).
In Syed v. M-I, LLC, the Court ruled that disclosure and authorization forms signed by a prospective employee cannot also contain a waiver of liability. Under the FCRA, prospective employers cannot obtain background checks on their applicants unless the prospective employer provides a written disclosure and obtains written authorization. The FCRA also contains penalties for violating the Act. A prospective employee can sue for any damages, and also can obtain penalties ranging from $100 to $1,000, punitive damages, and attorney’s fees and costs if the violation is found to be willful.