Legal Blog

Compensation and Compliance Matters: Lenders Get a Break on Background Checks

The rock and hard place between which lenders have found themselves in regard to the use of hiring screens and disparate impact (in hiring) just got a bit softer. The Sixth Circuit—the first federal circuit to consider the issue—dismissed the EEOC’s (Equal Employment Opportunity Commission) lawsuit against an employer’s use of credit checks as a hiring screen, finding no basis for the assertion that credit checks have a disproportionately adverse effect on the hiring of minorities. A logical extension could similarly be applied to the use of criminal background checks. Click here to read the rest of the article If you have any questions about qualified mortgage rule loans please contact Ari Karen at: Bank Manager Reimbursementsakaren@offitkurman.com | 240.507.1740 | Ari Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide. Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others. You can also connect with Offit Kurman via FacebookTwitterGoogle+YouTube, and LinkedIn.