The Fair Credit Reporting Act (FCRA) is over 40 years old, but it is only recently that the number of class action lawsuits alleging violations of it have spiked. And unlike traditional legal actions the FTC took against credit bureaus and reporting agencies, these more recent lawsuits target check authorization services, banks, retailers, grocers, and… Read more »
Two recent settlements announced by the Federal Trade Commission (FTC) drive home the point and serve as an important reminder that employment background screening is subject to the federal Fair Credit Reporting Act (FCRA). You, as an employer, should understand how the FCRA relates to your employment screening program and ensure that your consumer reporting… Read more »
Author: Michael Gaul The other day, I arrived at the office greeted by news related to three separate lawsuits involving employment screening companies, their employer-customers, and applicants trying to gain employment. Each of these suits involves a complex web of legal issues and accusations – one involving an alleged failure to follow adverse action notification… Read more »
Employment credit reports have been in the spotlight in recent years as states battle over whether employers should evaluate workers on the basis of their creditworthiness. Employers routinely use credit reports—for financially sensitive positions and alongside other background screening measures—to assess a candidate’s financial responsibility and potential risk. One argument being played out in the… Read more »
New FCRA Forms Take Effect January 1, 2013 Friendly reminder! The Consumer Financial Protection Bureau (CFPB), which took over enforcement of the Fair Credit Reporting Act (FCRA) in July 2011, requires that employers and CRAs start using a new set of forms by January 1, 2013. The updated forms include: Summary of Rights Under the… Read more »
Unfortunately, the old adage, “There is no such thing as bad publicity” doesn’t always ring true. In today’s tight job market, the slightest hint of an unfair hiring practice will travel fast into the headlines and even faster into the courtroom. The recent could-be class action case against Advance Auto exemplifies what can happen if… Read more »
The human resources community and the employment screening industry have been buzzing lately about the second largest Fair Credit Reporting Act settlement penalty in history recently handed down to a background screening provider for multiple FCRA violations. The $2.6M settlement sent a resounding message that the practice of putting a name in a system and… Read more »
Sure, there’s an app for that. But that doesn’t mean you should be using it. Running a quick background check on the blind date you’ve been set up with might be a good way (or not, remember it’s going to be a database search) to use the latest mobile background screening apps, but the FTC… Read more »
Law firm Nichols Caster announced last week that former Domino’s Pizza employees will be allowed to proceed with putative class action against the company for alleged background check violations. According to the Nichols Caster press release, the United States District Court denied Defendant Domino’s Pizza’s motion to dismiss the case of Singleton, et al., v…. Read more »
If you’re conducing employment background checks you should understand how the Fair Credit Reporting Act (FCRA) will affect you. Whether operating a small business or a managing a large enterprise, it is prudent, if not required, that you follow FCRA regulations for employment background screening. And guess what? Since these rules are designed to protect… Read more »
