Recruiting

Is LinkedIn Violating the Fair Credit Reporting Act?


Is LinkedIn Violating the Fair Credit Reporting Act?

In my December 2014 post for Maximize Social Business, I explored some bad news for LinkedIn. First, in a new class action complaint filed in California (Sweet v. LinkedIn), LinkedIn is facing claims that it violated the Fair Credit Reporting Act (“FCRA”).

The lawsuit involves LinkedIn’s “Reference Search” service, which is only available to premium account holders. The service identifies connections in the premium account holder’s network who share a common past employer with the job applicant.

So, essentially, it organizes, cross-references and provides information to premium account holders about those who might have some relevant information about the job applicant’s work at a prior employer.

The four named plaintiffs allege that they were denied jobs with prospective employers because those employers contacted other LinkedIn users identified by the “Reference Search” as having worked with them (and presumably, those identified LinkedIn users did not give positive feedback on the plaintiffs). To see more about this lawsuit, and my analysis of it, read my article titled: “Allegations of LinkedIn Violating the Fair Credit Reporting Act“.

In my same post, I also analyze a $6 million settlement that LinkedIn entered into with the US Department of Labor regarding alleged violations of the Fair Labor Standards Act due to the failure to pay employees all the time worked, including overtime, by those employees.