Tag: Consumer Credit Reporting Agencies Act

Logistics Management Provider Targeted With a Class Action Lawsuit Over Inadequate Background Check Disclosures A major logistics management company faces a class action lawsuit over allegations that its background check procedures failed to comply with the Fair Credit Reporting Act's (FCRA's) requirements. In addition, the complaint claims the company habitually struggled to comply with the FCRA's disclosure requirements, the California Investigative Consumer Reporting Agencies Act, and the Consumer Credit Reporting Agencies Act. In this case, the plaintiff alleges the employer failed to provide legally compliant disclosure and authorization forms as a part of the background check process. Under the FCRA, an employer cannot obtain an investigative consumer report on an individual unless it clearly and accurately discloses the following to the consumer: Information about his character, general reputation, personal characteristics, or mode of living (whichever are applicable). The reports must come with a clear and conspicuous standalone disclosure. This disclosure reminds the individual that the report is for employment purposes and requires the consumer's written authorization to produce. The plaintiff alleges that the defendant failed to comply with this requirement before obtaining background checks for employment. More specifically, the class action lawsuit alleges that the employer violated the FCRA's provisions by: Including superfluous information; this includes identifying information not about the specific consumer, a waiver of liability, and additional unnecessary information about state disclosure requirements; Including the disclosure in a small, easily-to-miss font within a large employment package that included extraneous information; Failing to acquire written authorization before obtaining a consumer report, including doing so after the expiration of the individual's consent; Including an authorization for third parties to provide information to the employer not included in the original approval to perform the background check and Failing to provide consumers who were the focus of a background check with the required summary of rights under the FCRA. Additionally, the named plaintiff claims the employer violated several state laws. Specifically, the company failed to provide relevant disclosures and obtain authorization before acquiring these reports. The putative class action seeks to represent the defendant's current, former, and prospective employees beginning five years preceding the complaint filing. As this case shows, employers must ensure that their background check procedures comply with the FCRA and other applicable state laws. One of the best ways to do this is to work with a reputable employment screening provider to help ensure that the process is in line with all applicable state and federal consumer reporting laws. Learn more about how to stay in compliance with fair chance hiring practices with Pre-employ’s free guide on 5 Tips To Avoid FCRA Non-Compliance. Source

Tag: Consumer Credit Reporting Agencies Act

Logistics Management Provider Targeted With a Class Action Lawsuit Over Inadequate Background Check Disclosures

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