A recent proposed class action lawsuit against Starbucks Corp. highlights the need for all employers to strictly follow FCRA provisions when it comes to utilizing background checks in their hiring process.
In the Starbucks lawsuit, the plaintiff is alleging Starbucks neglected to provide him a pre-adverse action report when his background check came back with convictions. And when the plaintiff contacted the background check company and had any inaccuracies corrected, Starbucks had already removed him from the process and the job was no longer offered.
By allegedly failing to provide the plaintiff an opportunity to dispute the contents of the background check, Starbucks may have violated the pre-adverse action notification requirement in the Fair Credit Reporting Act (FCRA). According to the FCRA an applicant must receive a copy of the background check report and a meaningful opportunity to dispute and correct its contents.
It is up to employers to routinely review their background check policies to ensure that they are in compliance with not only the FCRA, but all applicable federal, state, and municipal laws.
Learn more about the products and services IntelliCorp offers our clients in order to help them maintain a comprehensive background screening program.
IntelliCorp is accredited with the National Association of Professional Background Screeners (NAPBS).
Here is a link to another story on this case:
Starbucks Class Action: Faulty Background Check Cost Applicant a Job