Legal Update – July 2024

News

By Claire Sweetman

Colorado’s Job Application Fairness Act (JAFA) Takes Effect

On July 1, 2024, the Job Application Fairness Act (JAFA) takes effect in Colorado.[1] The law prohibits employers from seeking any information that might reveal a job applicant’s age during the initial application process. Prohibited questions may include asking about an applicant’s age, date of birth, or dates of attendance or graduation from an educational institution. Employers are still permitted, however, to ask applicants whether they meet certain age restrictions.[2] Similarly, employers are permitted to require applicants submit copies of certifications or transcripts, but they must notify applicants that they are permitted to redact information that identifies their age. The legislation aims to combat age discrimination and foster a fairer hiring environment. Penalties include warnings and compliance orders for a first violation, $1,000 for a second violation, and $2,500 for each third and subsequent violation.[3] Employers should revise their job applications and interview procedures to comply with this new law, ensuring that no age-related questions are posed directly or indirectly. In enacting this law, Colorado joins California, Connecticut, Minnesota, and Pennsylvania in states that bar employers from requesting age-related information from initial job applicants.[4]

FDIC Investigation Report Released

In May 2024, the Federal Deposit Insurance Corp. (FDIC) released the report of an independent investigation into workplace harassment and bullying concerns.[5] The investigation was conducted by a third-party law firm, Cleary Gottlieb Steen & Hamilton, and was overseen by the Special Committee of the FDIC Board of Directors.[6] The 234-page report contained the accounts of more than 500 employees who reported misconduct at the agency.[7] The report substantiated employees’ allegations regarding sexual harassment, discrimination, and interpersonal misconduct. It further found that management’s responses to the allegations were insufficient and ineffective at remedying the harm caused and preventing future misconduct.[8]

In response to the report’s publication, many concerned individuals have begun calling for Chairman Gruenberg’s resignation. The report revealed that although Chairman Gruenberg’s conduct was not the root cause of the sexual harassment and discrimination in the agency or the workplace culture issues, his actions did little to curb the misconduct.[9] Indeed, the report contained allegations from workers that Chairman Gruenberg sometimes lost his temper and treated workers in a “demeaning and inappropriate manner.”[10]

The report included recommendations for fixing the FDIC’s culture, such as making sure that employees who experienced harassment and mistreatment are protected.[11] The report also recommended appointing a new “Culture and Structure Transformation Monitor” to audit and report on structural changes at the agency.[12]

[1] https://www.forbes.com/sites/alonzomartinez/2024/06/28/new-laws-impacting-employers-conducting-background-checks-effective-july-1-2024/

[2] https://ogletree.com/insights-resources/blog-posts/colorados-job-application-fairness-act-restricts-employers-ability-to-request-age-related-information-from-applicants/

[3] Id.

[4] Id.

[5] https://www.cbsnews.com/news/fdic-investigation-wsj-toxic-workplace-report/

[6] https://www.fdic.gov/news/press-releases/fdic-special-review-committee-releases-independent-report-workplace-misconduct

[7] https://www.cbsnews.com/news/fdic-investigation-wsj-toxic-workplace-report/

[8] https://www.fdic.gov/news/press-releases/fdic-special-review-committee-releases-independent-report-workplace-misconduct

[9] https://www.cbsnews.com/news/fdic-investigation-wsj-toxic-workplace-report/

[10] Id.

[11] Id.

[12] Id.

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