Recent multi-million dollar settlements highlight the importance for employers of complying with the Fair Credit Reporting Act (FCRA) and highlight that, when it comes to class action lawsuits in the employment-law context, the FCRA is the new FLSA (Fair Labor Standards Act)!
The FCRA has very specific requirements employers must comply with if they engage a background check service provider to compile background reports on job applicants. These types of reports include credit reports, criminal background reports, and other reports that have any bearing on someone’s moral character or reputation. Even employers who do comply with these four broad requirements tend to miss some of the more intricate, lesser-known requirements that each step further requires.
The FCRA is not an easy statute to comply with. In addition. It is advisable that employers conducting background checks of any kind on applicants or employees consult with competent counsel to review their forms and their processes to ensure they are FCRA compliant in all respects – even if the background screening company assures them their forms are compliant.
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