The Ninth Circuit’s August 2025 ruling in Grijalva v. ADP Screening clarified how exclusions from federally funded healthcare programs and similar long-term listings, such as sex offender registries, can be reported under the Fair Credit Reporting Act (FCRA).
Key Implications for Employers:
- Ongoing exclusions are reportable. Even if the exclusion began over seven years ago, it’s considered a current status and can appear in a background report.
- The reason for the exclusion may not be reportable. If the underlying cause (e.g., an administrative action) occurred more than seven years ago and isn’t a criminal conviction, Consumer Reporting Agencies (CRAs) generally cannot report it unless the candidate is expected to earn $75,000 or more annually.
- Employers can ask candidates directly. If you need context behind an exclusion or listing, you’re free to ask the candidate. CRAs may be restricted from providing that information due to FCRA limitations.
- Convictions are treated differently. Criminal convictions are reportable regardless of age under the FCRA, but several states impose their own time-based restrictions.
Disclaimer: This communication is for general informational purposes only and does not constitute legal advice. The summary provided in this alert does not, and cannot, cover in detail what employers need to know about the amendments to the Philadelphia Fair Chance Law or how to incorporate its requirements into their hiring process. No recipient should act or refrain from acting based on any information provided here without advice from a qualified attorney licensed in the applicable jurisdiction.