The California Supreme Court ruled bus transportation company First Student Inc. violated the Investigative Consumer Reporting Agencies Act by failing to notify employees it was conducting background checks, Bloomberg BNA reports. The justices upheld a lower court’s ruling, as First Student also did not obtain consent before performing background checks on 54,000 Laidlaw International Inc. bus drivers. The court still found First Student at fault, even though it complied with the less-stringent Consumer Credit Reporting Agencies Act. “The implications are that these two laws are relatively straightforward and easy to follow. So landlords, employers, banks, anyone seeking to run a background check that falls in one or both of these statutes will continue [to] have to comply with them,” Hunter Pyle Law Principal Hunter Pyle said.
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