Photo of Heidi Siegmund

On July 11, 2024, the U.S. Court of Appeals for the Seventh Circuit held in Consumer Financial Protection Bureau v. Townstone Financial, Inc. that the Equal Credit Opportunity Act (“ECOA”) protects prospective applicants and prohibits creditors from discouraging prospective applicants on the basis of sex, marital status, race, color, religion, national origin, or age.  Lenders and other financial institutions should take note of Townstone, as it expands the ECOA to apply even before a credit transaction begins.Continue Reading Consumer Financial Protection Bureau v. Townstone Financial, Inc.

On July 16, in Smith v. Professional Transportation Inc.,[1] the Seventh Circuit answered what might at first seem like an unnecessary question:  how does a plaintiff “commence” an FLSA lawsuit?  Under most circumstances, of course, a named plaintiff need only file a Complaint, and the lawsuit is off and running.  But unlike Rule 23 class actions, the FLSA requires putative collective action members to affirmatively opt into a collective action by giving their consent in writing.  Specifically, the statute says that “[n]o employee shall be a party plaintiff to any such [collective] action unless he gives his consent in writing to become such a party” and the consent is filed with the court.  29 U.S.C. § 216(b).  In other words, each employee’s lawsuit is “commenced,” and the statute of limitations stops running for that individual, on the date he or she files a signed consent.
Continue Reading How to ‘Commence’ an FLSA Lawsuit: More Than Meets the Eye

On Jan. 29, 2019, the 9th U.S. Circuit Court of Appeals, in a strikingly broad decision, raised the bar for employers’ compliance with the Fair Credit Reporting Act (FCRA). In Gilberg v California Check Cashing Stores LLC, the court held that an employer violates the FCRA by including, in a pre-background check notice form,