Don't Make the Same Mistake These Companies Did, Avoid this FCRA Violation

Over the last few years several employers have learned expensive lessons regarding the Fair Credit Reporting Act (FCRA).  Nationally known brands such as Whole Foods, Dollar General, Panera, and Michaels have all been the target of class action lawsuits claiming a violation of the FCRA.  

The most common accusation centers on these companies failing to adequately disclose that an applicant’s consumer report may be obtained during the hiring process.  The FCRA mandates to employers that they must clearly notify the applicant that a consumer report will be done.  A stand-alone document would satisfy the FCRA requirement; however, some companies include the disclosure form with other pieces of information, which no longer satisfies a “clear and conspicuous” mandate. By failing to use a stand-alone form, companies have become targets of class action lawsuits which could cost them millions in penalties.  

Another common violation ripe for a lawsuit includes failure to follow adverse action requirements which mandate the employer notify the applicant if they plan not to hire them due to the results of a background check. This in theory gives the applicant time to address any errors in their report before their candidacy is ended.  Employers who fail to provide the opportunity for an applicant to address the results of their background check risk a lawsuit,  

As Dollar General learned after paying out a $4 million settlement, employers need to take this recent trend of class action lawsuits seriously and ensure their hiring process follows the FCRA to the letter. Otherwise they face a potentially damaging lawsuit.  

Here is a link to a story on the subject: 
Why Whole Foods, Dollar General, and Panera have all been Sued over a Tiny Hiring Technicality 

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