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Issue: XII
October 2014
LinkedIn Hit with Class-Action Lawsuit

The lawsuit accuses LinkedIn of violating the Fair Credit Reporting Act

Abridged: Alice Truong; Fast Company

 

The lawsuit filed Thursday in a federal court in Northern California takes issue with LinkedIn's job reference tool, available to employers subscribing to premium service.

 

LinkedIn can generate reference reports that can include the names, location and employment history of people who have worked with a given job seeker. The Fair Credit Reporting Act requires parties to let a person know when a consumer report is used to deny application for employment, insurance or credit. Furthermore, consumer consent is required to provide reports to potential employers. Applicants are not told when a potential employer runs a reference report on LinkedIn.

 

The lawsuit claims that any potential employer can anonymously dig into the employment history of any LinkedIn member and make hiring and firing decisions based upon the information gathered.

 

The four plaintiffs named in the suit are suing for statutory and actual damages.

Business on a Budget

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It's Harder to Lose than to Gain
Don't Rush the Hiring Process

It's a lot harder to let someone go than it is to bring them onboard when you realize you've hired the wrong person. There are financial ramifications when you repeat the interview process but productivity and morale may also suffer.

The added emotional toil of having to let an employee go should be further motivation to get it right the first time.


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