Legislative Alert: Disney Beats Suit | Millions for E-Verify | Another Bad Lab [Video]
- Judge Dismisses FCRA Class Action Against “Happiest Place on Earth”
- Proposed Budget Earmarks Millions for E-Verify
- Another Lab Abusing Medicaid Trust
Judge Dismisses FCRA Class Action Against “Happiest Place on Earth”
Five years ago, Roger Culberson filed a class action lawsuit against Walt Disney Parks and Resorts alleging the enormous employer obtained background checks on applicants without proper disclosure forms. The suit also claimed Disney made adverse employment decisions without following the proper adverse action process by labeling some applicants as “no hire.” A Superior Court Judge in Los Angeles shut down both claims by granting summary judgement to Disney. The Court found that while the plaintiffs might be able to show technical violations in the disclosure forms, Disney did not willfully violate the Fair Credit Reporting Act (FCRA). The judge also said the “no hire” designation did not require the adverse action process because it was an “internal decision” that an employer is allowed to make.
[Related] Adverse Action: An Employer’s Guide
Proposed Budget Earmarks Millions for E-Verify
The year already feels like it is flying by. Now, the White House has released the President’s Budget for fiscal year 2019. One notable addition is $23 million budgeted specifically to expand the E-Verify Program. The addition is an effort to crack down on employers who hire illegal workers. The budget calls for the mandatory, nationwide use of the E-Verify system. The online tool, which verifies that job applicants are authorized to work in this county, is free to employers and is more than 99% accurate. Some states already mandate the use of E-Verify, and some Federal contractors have been required to use it for years.
Another Lab Abusing Medicaid Trust
Last week we told you about Boston-based Precision Testing Laboratories, Inc. reaching a settlement with two states after getting caught bilking drug treatment programs for hundreds of thousands of dollars in over-priced drug testing. Now, a company called AML Diagnostics in Georgia is being accused of the same thing. The Georgia Department of Community Health (DCH), which pays for drug testing for patients covered by Medicaid, says it paid $14 million in drug testing fees in 2017. That was a 420% increase in just two years. Patients were also sent bills for outrageously priced urine tests checking for marijuana, cocaine and opioids. One woman was billed over $95,000 for 11 drug tests that should have cost about $50 a piece. Georgia State Senator Renee Unterman has now authored a bill that would increase penalties for what the bill calls “opioid vultures."