Avis Settles FCRA Background Check Lawsuit for $2.7 Million

Car rental company Avis recently settled a class action lawsuit for $2.7 million over claims against their background screening practices. In the lawsuit the plaintiff claimed Avis failed to use a stand-alone background check disclosure form, included a citation in the background check report that should have not been included, and did not provide an adverse action notice. Avis denied that they committed any wrongful acts or violations of law. 

This lawsuit is another reminder to employers how important it is to maintain a legally compliant background screening program. Here are some things to remember:  

  • Utilize a background check disclosure form that does not include any extraneous information such as a liability waiver. It should be a stand-alone document.
  • Use the EEOC “green factors” when considering a candidate for a job. The “green factors” were created around the enforcement of the Title VII of the Civil Rights Act of 1964. The “green factors” ask the employer to consider the following:
    • The nature and gravity of the offense or conduct
    • The time that has passed since the offence or conduct and/or completion of sentence
    • The nature of the job sought and how it may or may not relate to a candidate’s criminal history
  • Remain compliant with all FCRA rules and regulations, in this case, providing a candidate an adverse action notice alerting them to the report results and giving the candidate up to 30 days to respond and correct the record if necessary.  

Employers should also partner with a NAPBS accredited background screening provider, periodically review their own internal background screening practices to ensure compliance with law, and consult with an attorney specializing in employment law if they have any questions. 

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