February

Genesis Healthcare hired plaintiff Doris Ramos in July 2014 to work as an occupational therapist, then rescinded the job offer after a background check, the complaint states. Ramos contends that Genesis never provided her with a copy of the background check and a statement of her rights, as called for by the FCRA, Law360 reported. The FCRA governs the collection and distribution of consumer information, including background checks as well as credit reporting. Ramos also claims that the background check inaccurately said that she had a felony conviction. Because of this alleged error, Ramos also has brought a claim against General Information Services Inc., charging that the consumer reporting firm contracted by Genesis does not take reasonable steps to ensure accuracy.

"In recent years, questions have been raised in many quarters about how brokers with questionable backgrounds have been able to move among firms and remain in the industry. FINRA has responded by enhancing a broker dealer 's obligations for reviewing the backgrounds of its newly hired brokers.

The SEC recently approved proposed FINRA Rule 3110(e), which requires FINRA member firms to verify the information in Form U4 within 30 calendar days of filing. The proposed rule, which will take effect on July 31, 2015, is intended to improve the information that winds up in FINRA 's Central Registration Depository (CRD) and BrokerCheck. FINRA 's 2015 Regulatory and Examinations Priorities Letter (January 6, 2015) discusses its concern with ""high-risk and recidivist brokers,"" including firms ' due diligence on prospective hires, and highlights the proposed rule with respect to investor protection."

Most employers understand the importance of compliance with the federal Fair Credit Reporting Act (FCRA) as it applies to background checks and applicant records. However, employers also must recognize the interplay of state law restrictions on the use of background checks in the application and employment process. Recently, a federal district court in Pennsylvania granted summary judgment in favor of an employer who withdrew an offer of employment after that employer found a discrepancy between background check records and information reported directly by the applicant to the company. McCorkle v. Schenker Logistics, Inc., MDPA, 1:13-cv-03077, October 8, 2014.