Top 10 Employment Law Developments of 2024

The year 2024 witnessed significant advancements in employment law, particularly concerning discrimination and background checks. These developments have profound implications for employers and employees alike. Here are the top 10 employment law stories of the year:

10. “Ban-the-Box” Legislation Expands

Several states and municipalities expanded “Ban-the-Box” laws, prohibiting employers from inquiring about an applicant's criminal history on initial job applications. This movement aims to provide individuals with criminal records a fair chance at employment by delaying background checks until later in the hiring process. Employers must stay informed about these changes to ensure compliance.

9. EEOC’s Focus on Systemic Discrimination

The Equal Employment Opportunity Commission (EEOC) intensified its efforts against systemic discrimination, filing 13 new cases involving patterns or policies of discrimination. This strategic focus underscores the agency's commitment to addressing widespread discriminatory practices in the workplace.

8. Supreme Court’s Decision in Muldrow v. City of St. Louis

In a landmark decision, the Supreme Court ruled in Muldrow v. City of St. Louis that employees are not required to demonstrate “significant harm” to bring discrimination claims under Title VII of the Civil Rights Act. This decision significantly lowers the bar for employees seeking justice, ensuring that even less tangible harms—such as changes in job responsibilities or other non-monetary detriments—can form the basis of a discrimination claim.

The ruling broadens workers’ protections by reinforcing that Title VII is meant to address all forms of workplace discrimination, not just those tied to major financial or career setbacks. Employers must now scrutinize their employment practices to ensure they are not implementing policies or decisions that could disproportionately impact certain groups, even if the consequences seem minor on the surface.

For employees, this case affirms the principle that fairness in employment actions matters, and discrimination at any level is unacceptable under the law. It also signals the courts' growing recognition of the subtle ways discrimination can manifest in the workplace.

7. Increased Scrutiny of AI in Hiring

The use of artificial intelligence (AI) in hiring practices came under increased scrutiny, with concerns about potential biases and discrimination. Regulators emphasized the need for transparency and fairness in AI-driven recruitment processes, urging employers to assess and mitigate any discriminatory impacts.

6. Strengthening of Pay Transparency Laws

Several jurisdictions enacted or strengthened pay transparency laws, requiring employers to disclose salary ranges in job postings. These measures aim to promote pay equity and reduce wage disparities based on gender and race. Employers must adapt their recruitment strategies to comply with these new requirements.

5. Expansion of Clean Slate Laws

“Clean Slate” laws, which allow for the automatic sealing or expungement of certain criminal records, gained momentum. States like Colorado and Delaware implemented such laws, impacting the information available during background checks and promoting fairer hiring practices.

4. EEOC’s Enforcement of the Pregnant Workers Fairness Act

The EEOC began enforcing the Pregnant Workers Fairness Act (PWFA), filing cases to protect the rights of pregnant employees. The agency's actions highlight the importance of accommodating pregnant workers and ensuring they are not subjected to discrimination.?

In other EEOC news, Karla Gilbride was appointed General Counsel of the EEOC. Gilbride’s appointment marked a historic moment, as she became the first individual with a known disability to hold the position. Her leadership is expected to influence the agency's approach to enforcing employment discrimination laws and promoting inclusive workplaces.

3. Legal Challenges to Background Check Practices

Employers faced increasing scrutiny over their background check practices in 2024, with legal challenges highlighting violations of the Fair Credit Reporting Act (FCRA). Central to these cases were allegations that employers failed to provide clear, standalone disclosures to job applicants and neglected to obtain proper consent before conducting background checks. Many lawsuits also underscored inaccuracies in the information provided by background check companies, leading to wrongful employment denials.

Inaccurate or outdated background reports can unfairly harm applicants, particularly those with sealed or expunged records. Employers have a legal duty to ensure the accuracy of the reports they rely on when making hiring decisions. When errors occur, the FCRA requires employers to notify the affected individuals, providing them an opportunity to dispute the inaccuracies before adverse action is taken.

For job applicants, these challenges highlight the importance of knowing their rights under the FCRA, including the right to dispute errors and receive copies of their reports. For employers, it’s a stark reminder of the critical need to review compliance policies, partner with reputable reporting agencies, and prioritize accuracy to avoid costly litigation and reputational damage.

2. Rise in Equal Pay Litigation

The year saw a surge in equal pay lawsuits, with employees challenging wage disparities. Notably, retail workers filed claims against major companies, alleging pay discrimination based on gender. These cases underscore the ongoing efforts to achieve pay equity in the workplace.

1. Landmark Ruling on Credit Report Errors: Santos v. Experian

In 2024, the U.S. Court of Appeals for the Eleventh Circuit issued a groundbreaking decision in Santos v. Experian Information Solutions, Inc., holding that consumers can recover statutory damages for willful violations of the Fair Credit Reporting Act (FCRA) without proving actual harm. This ruling allows plaintiffs to seek damages ranging from $100 to $1,000 per violation, emphasizing the importance of accurate credit and background check reporting.

The decision puts renewed pressure on credit reporting agencies to maintain high standards for accuracy and compliance, as even technical violations can lead to costly penalties. For consumers and job applicants, it underscores the FCRA’s robust protections and the value of pursuing legal remedies when errors occur.

The 2024 Employment Law Wrap Up

The year 2024 marked a turning point in employment law. Changes highlight the evolving landscape of employee rights and employer responsibilities. Employers must prioritize compliance and fairness and recognize that even unintentional lapses can lead to legal challenges and reputational harm. Employees are better equipped than ever to advocate for themselves, armed with stronger legal protections and broader recourse for injustices.

The fight for workplace equity is ongoing. 2024’s changes underscore the importance of vigilance and advocacy, proving that progress is possible through collective effort and legal enforcement.

Looking ahead to 2025, we anticipate continued innovation in employment law and a deeper focus on accountability, ensuring that the workplace evolves to reflect society’s commitment to fairness and equity for all. One thing is certain: Consumer Attorneys will always be ready to fight for you.?