Workforce Bulletin

As featured in #WorkforceWednesday:  This week, we’re providing an overview of (i) the year-over-year increase in Equal Employment Opportunity Commission (EEOC) lawsuits, (ii) New York’s employee intellectual property (IP) law, and (iii) the collaborative agreement between the Federal Trade Commission (FTC) and the U.S. Department of Labor (DOL).

EEOC Lawsuits Increase

For fiscal year 2023, the EEOC reported a 50 percent increase in lawsuits filed by the agency compared to the previous year. The end of the fiscal year typically brings a spike in EEOC-filed lawsuits ...

On Tuesday, April 25, 2023, the Equal Employment Opportunity Commission (“EEOC”), Consumer Financial Protection Bureau (“CFPB”), Justice Department’s Civil Rights Division (“DOJ”), and the Federal Trade Commission (“FTC”) issued a “Joint Statement on Enforcement Efforts Against Discrimination and Bias in Automated System” (“Joint Statement”).  According to a press release from the EEOC, by the Joint Statement, the federal agencies pledged to uphold America’s commitment to the core principles of fairness, equality, and justice as emerging automated systems, including those sometimes marketed as “artificial intelligence,” or “AI,” become increasingly common in people’s daily lives – impacting civil rights, fair competition, consumer protection, and equal opportunity.

On February 1, 2023, the FTC announced a proposed $1.5 million settlement with GoodRx Holdings, based on alleged violations of the Federal Trade Commission Act (“FTC Act”) and Health Breach Notification Rule (“HBNR”) for using advertising technologies on its websites and mobile app that resulted in the unauthorized disclosure of consumers’ personal and health information to advertisers and other third parties. On the same day, the U.S. Department of Justice, acting on behalf of the FTC, filed a Complaint and Proposed Stipulated Order detailing the FTC’s allegations and the terms of the proposed settlement. 

As reported in a June 3, 2022 press release from the House Committee on Energy and Commerce, U.S. Representatives Frank Pallone, Cathy McMorris Rodgers, and Senator Roger Wicker released a “discussion draft” of a federal data privacy bill entitled the “American Data Privacy and Protection Act” (the “Draft Bill”), which would impact the data privacy and cybersecurity practices of virtually every business and not-for-profit organization in the United States.

As further described below, the Draft Bill’s highlights include: (i) a comprehensive nationwide data privacy framework; (ii) preemption of state data privacy laws, with some exceptions; (iii) a private right of action after four (4) years, subject to the individual’s prior notice to the Federal Trade Commission (“FTC”) and applicable state attorney general before commencement of lawsuit; (iv) exemptions for covered entities that are in compliance with other federal privacy regimes such as the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and Gramm-Leach Bliley Act (“GLBA”) solely with respect to data covered by those statutes; (v) exclusions from Act’s requirements for certain “employee data”; and (vi) a requirement for implementation of reasonable administrative, technical and physical safeguards to protect covered data. The Draft Bill would be enforced by the FTC, and violations treated as unfair or deceptive trade practices under the Federal Trade Commission Act, as well as by state attorneys general.

As we have previously blogged, use of third-party digital hiring platforms to select job applicants using video interviews can present an array of potential legal issues. A recent Complaint filed with the Federal Trade Commission (“FTC”) by a consumer advocacy organization, Electronic Privacy Information Center (“EPIC”), illustrates some of those potential pitfalls. EPIC asks the FTC to investigate the recruiting technology company HireVue for alleged discriminatory screening of job applicants through its face-scanning software. HireVue asks job applicants to ...

The Federal Trade Commission (“FTC”) recently issued guidance discussing certain disclosure and authorization requirements that employers must satisfy prior to obtaining background screening reports for prospective employees.  If your company obtains background information to screen prospective employees, now is a good time to make sure you are complying with the Fair Credit Reporting Act (“FCRA”).

Under the FCRA, background screening reports are either “consumer reports” or “investigative consumer reports” when they are used for employment purposes ...

Our colleague Daniel J. Green, an Associate at Epstein Becker Green, has a post on the Trade Secrets & Noncompete Blog that will be of interest to many of our readers in the technology industry: “Aggressive New Antitrust Guidance for Human Resources Professionals Threatens Criminal Prosecution for Certain Unlawful Wage Fixing and No Poaching Agreements”

Following up on a string of civil enforcement actions and employee antitrust suits, regarding no-poaching agreements in the technology industry, on October 20, 2016 the Department of Justice (“DOJ”) and Federal ...

by Jeffrey M. Landes, Susan Gross Sholinsky, Steven M. Swirsky, and Jennifer A. Goldman

On January 25, 2012, the Federal Trade Commission ("FTC") sent warning letters to three companies that market, in total, six mobile phone applications ("Apps") that provide users with background check reports. In the warning letters, the FTC states that the Apps may violate the Fair Credit Reporting Act ("FCRA"). According to a press release issued by the FTC on February 7, 2012, the FTC cautioned the Apps' marketers that, if they have reason to believe that the background reports provided will be ...