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Showing posts with the label FCRA

Delaware’s Privacy Law is About to Expand: 6 Steps Employers and Businesses Should Take to Prepare

Just over a year after Delaware’s privacy law took effect, state lawmakers are close to expanding its reach by passing a bill that could soon cover more businesses, narrow a key exemption, and expand the definition of sensitive data. Most notably for employers, the pending legislation would also impose significant new obligations on the use of AI in the workplace, capturing resume screeners, interview scoring tools, workforce analytics platforms, and similar technology. If the bill passes as expected, these amendments would take effect on January 1, 2027. What do you need to know about this bill and what are the six steps you should take to prepare? Quick Status Update House Bill 380 would amend Delaware’s Personal Data Privacy Act (DPDPA), which passed in 2023 but took effect in 2025 ( you can read a summary here ). The bill passed the House on May 21 by a 30-9 vote and now sits in the state Senate, where it is expected to soon pass given its strong momentum and institutional backin...

Employers Turn to AI to Screen Candidates’ Social Media: Best Practices to Minimize Legal Threats

Roughly 70% of employers now screen social media profiles as part of the applicant screening process – but manually scrolling through Facebook posts, X feeds, and Instagram photos is time-consuming and inconsistent . Enter social media AI investigations tools that promise to streamline the process. These platforms use natural language processing (NLP) to scan candidates’ public posts, analyze language patterns and sentiment, and generate personality assessments predicting traits such as teamwork, openness, adaptability, or leadership potential. The pitch is compelling: get deeper insights into candidates' “real” personalities beyond what resumes and interviews reveal, all while saving your HR team countless hours. But before you deploy AI to comb through applicants’ social media, you need to understand the significant legal risks these tools create and consider some best practices. Risks of Social Media Sweeps Like all tools, use of social media AI investigations tools comes with ...

So, You Hired a Fraudulent Employee—Now What?

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Figuring out that you hired the wrong person is always jarring. But what if the “wrong person” was never who they said they were at all? When an employer discovers that a current employee has misrepresented their identity—whether by applying using a stolen name and Social Security number, misrepresenting their identity using artificial intelligence (AI), or other techniques during the interview process—the stakes rise significantly . 0:00 7:54 In this article, we address how employers can respond in the immediate aftermath of discovering a fraudulent employee and their considerations moving forward. Quick Hits Employers may want to take immediate action to terminate an individual’s access and privileges as soon as they determine the individual is a fraudulent employee. Employers may also want to promptly involve trusted IT and legal personnel to conduct a forensic evaluation of the employee’s activity on the company’s systems. If the evaluation identifies unauthorized access to compan...

Job Applicants Sue AI Screening Company for FCRA Violations: 5 Key Takeaways for Employers

A new class action lawsuit against an AI recruiting platform could have significant implications for employers using artificial intelligence to screen job candidates. Two job applicants filed suit against Eightfold AI in California state court on January 20, alleging that the company violated federal and state consumer protection laws by creating “hidden credit reports” on job seekers without complying with statutory requirements imposed on consumer reporting agencies, including obtaining proper certifications from employment-purposed end-users . While we’ve started to see a series of lawsuits across the country attacking AI hiring systems for alleged discrimination, this could be the first to take the position that an AI tool could lead to a FCRA violation. Here’s what employers need to know about this developing legal challenge and five key takeaways to help protect your organization. The Allegations: AI Screening Tools as “Consumer Reports” The lawsuit, filed by Erin Kistler and Sru...