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Compliance News Flash - August 18, 2017

Arnall Golden Gregory LLP is pleased to provide you with the Compliance News Flash, brought to you each Friday. This weekly update is your source for timely background screening and immigration-related news that is important to your organization.

  1. The Administration may be close to announcing Joseph Simons as the President’s pick to lead the Federal Trade Commission. Maureen Ohlhausen is currently the Acting Chairman of the FTC. Simons is an antitrust lawyer with the law firm Paul Weiss. 

  2. When Congress returns from its August recess immediately after the Labor Day Holiday keep an eye on the House Financial Services Committee as they may hold a hearing and markup the FCRA Liability Harmonization Act (H.R. 2359). The legislation, introduced by Rep. Loudermilk (R-GA), seeks to cap class action lawsuits for noncompliance with the Fair Credit Reporting Act. The total recovery (excluding attorney’s fees) would be $500,000 or 1% of the net worth of the entity. 

  3. A recent government investigation related to the employment eligibility verification form (aka the “Form I-9”) demonstrates the cost of non-compliance with immigration law requirements tied to a company’s workforce. The fast food chain Panda Express agreed to settle a Department of Justice investigation and was fined $400,000 and required to create a $200,000 fund to provide back pay to affected employees in addition to training human resources personnel on the requirements of the Immigration and Nationality Act’s non-discrimination provision. Panda Express’ issue was tied to re-verification of existing employees work authorization and potential discrimination based on an employee’s citizenship or national origin status. The misdeed? Panda Express required lawful permanent resident workers to re-establish their work authorization when their Permanent Resident Cards expired – which is not permissible. Individuals presenting an unexpired Permanent Resident Card do not need to have their work authorization re-verified in section 3 of the Form I-9 when the document expires. 

  4. The New York City Commission on Human Rights held a public hearing this week on proposed changes to its rules regarding certain definitions and procedures related to the Stop Credit Discrimination in Employment Act (SCDEA). Of concern is the overly broad definition of “consumer reporting agency,” which definition is also inconsistent with the Fair Credit Reporting Act and New York state law; as well as the creation of per se violations of SCDEA. Per se violations would include stand-alone violations regardless of whether any adverse employment action was taken or any actual injury was incurred. One example of a per se violation would be requesting consumer credit history regarding job applicants from a consumer reporting agency, and another would be asking or requiring applicants for employment to sign a waiver authorizing a credit check where it is not otherwise permitted. 

  5. Delaware recently passed legislation adding additional requirements for data breaches affecting state residents. Moving forward, if a data breach affects more than 500 Delaware residents, notice must be provided to the state Attorney General of the breach. In addition, if the data breach involves social security numbers, credit monitoring services must be provided to affected residents for one year, at no charge to the consumer. The legislation also adds “risk of harm” language driving whether notice must be provided to affected residents if no harm will result to affected consumers. The legislation will be effective in the Spring of 2018.

If you have any questions or need assistance on any point raised in this Compliance News Flash please contact:

 Montserrat Miller  

Montserrat C. Miller
Partner, DC Office



The information presented provides a general summary and/or recent legal and regulatory developments. It is not intended to be, and should not be relied upon as legal advice.
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