October



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| Insurance
October 6, 2015
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Using Criminal Convictions in the Hire Process: A Hobson's Choice for Employers?

Is the government really telling employers that they are not allowed to disqualify an applicant because of past criminal activity? In a word, yes. That is increasingly becoming the case on the state level and has been the focus of federal enforcement efforts over the past several years, ever since the EEOC updated its guidance on this topic in 2012. This flurry of activity has made what was historically a simple hiring practice into a legal minefield. In short, restrictions on the use of criminal convictions are here to stay and likely will become even more restrictive over time. There is no sure-fire way to avoid a claim of discrimination. By putting the practices outlined in this article into place, however, companies will stand a far better chance in defending the practice when such a claim does arise.

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October 6, 2015
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Insurer Required to Defend and Indemnify FCRA Action Despite Penalty Exclusions

The New York Supreme Court has issued an opinion finding that an insurer has a duty to defend and indemnify a national background screening company in two FCRA actions despite the policy 's exclusions of fines and penalties. The plaintiffs sought statutory damages and alleged that a national background screening company willfully violated the FCRA. The central issue was whether the background screening company 's errors and omissions insurance policy required its insurer to defend and indemnify it. In its cross motion for summary judgment, the background screening company argued that under the policy, the insurer was required to defend and indemnify because the underlying claims constituted compensatory damages covered by the policy. This decision provides guidance on the interplay of insurance policies and claims under the FCRA.

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October 6, 2015
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Delaware Adds to Growing Patchwork of Social Media Laws

"On August 7, Delaware Governor Jack Markell signed a law to prohibit employers from interfering with the personal social media accounts of their prospective and current employees. The new law defines ""personal social media"" to encompass any account on a social networking site created and operated by a prospective or current employee exclusively for his or her personal use. The term does not include accounts created or operated by an employer and that are operated by an employee as part of his or her employment. The new law also forbids an employer from taking adverse action against a prospective or current employee for failing to comply with any of these requests or demands. The new Delaware law continues a growing trend across the country."

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