Employers Beware: Failure to truly understand Fair Credit Reporting Act background checks could mean a lawsuit coming your way

For example, the carrier Swift Transportation has found itself back under the legal microscope recently with a class action lawsuit being filed against it in a Virginia federal court. The lawsuit claims the company failed to tell more than 10,000 people who applied for jobs they can access the same information as the company for background checks and question the information the company reviews in making hiring decisions. The use of background checks for employment purposes have also received greater scrutiny by the Equal Employment Opportunity Commission (EEOC). In fact, the EEOC offered specific guidance last month on how employers can perform background checks within legal constraints, as well as filing two lawsuits in the last few months claiming that the companies in question were violating the Civil Rights Act due to their policies of not hiring those convicted of crimes. These recent lawsuits follow in the footsteps of a number of other FCRA claims, such as K-Mart settling a suit by agreeing to pay $3 million over claims that it did not comply with FCRA authorization requirements before obtaining consumer reports in February. Or US Xpress paying $2.75 million to settle claims that it did not provide proper FCRA disclosures prior to obtaining background checks in April. And then there was Domino’s Pizza, who recently obtained preliminary approval for a $2.5 million settlement over claims that it did not comply with FCRA notice and pre-adverse action requirements in May. How can employers make sure they don’t make these types of mistakes? The best way to ensure that you stay on the right side of the law with background checks is by bringing a professional, NAPBS accredited background screening service on board. A screening firm will provide you with reliable and accurate results, ensuring that you know any information regarding applicants or employees that could put you at risk, and avoiding the legal pitfalls that are easy to slip up on.]]>