A class action complaint filed against a Consumer Reporting Agency (CRA) on April 16, 2012, alleges that the Defendant reported inaccurate criminal data obtained from an “instant” criminal record search without courthouse confirmation, and also that there was allegedly no notice to the consumer who was the subject of the search. The suit also alleges that such acts were in violation of the federal Fair Credit Reporting Act (FCRA) that protects consumers from inaccurate or irrelevant information and failed to meet the standard of accuracy and fairness mandated by the FCRA. (more…)

In a ruling that will make school sex abuse lawsuits easier for California parents and students to file, the California Supreme Court has ruled that school districts can be held “vicariously liable” for the negligent hiring, retention, and supervision of employees who are prone to sexually abusing students. California Supreme Court Justice Kathryn Werdegar wrote the unanimous Supreme Court opinion for the case ‘C.A. a Minor, etc. v. WILLIAM S. HART UNION HIGH SCHOOL DISTRICT et al.’ that is available at: http://www.courtinfo.ca.gov/opinions/documents/S188982.PDF. (more…)

In yet another class action alleging that an employer did not comply with the legal requirements of the federal Fair Credit Reporting Act (FCRA), a federal court in Maryland refused a motion to dismiss a class action that alleges that Domino’s Pizza failed to comply with the requirements of the FCRA, the federal law that regulates pre-employment background screening.  In a decision filed January 25, 2012, the Court did not rule on the facts, but ruled that the plaintiffs had made a sufficient showing to deny a motion by the employer to dismiss. In addition, the court refused to strike allegations that the conduct was willful, which means that the plaintiff faces statutory damages as well as potential punitive damages.

(more…)

Consumers and attorneys are looking more closely at background check reports and laws governing employment screening and filing more lawsuits against employers. On one hand, employers are being sued by victims that alleged the employer failed to perform adequate screening. On the other, employers and background screening firms also face lawsuits from job applicants complaining about the accuracy of background reports, or failure to meet the guidelines of the federal Fair Credit Reporting Act (FCRA). In a number of cases, class action suits are being utilized as the vehicle to bring legal actions against employers. This is Trend Number 7 of the fifth annual ‘Employment Screening Resources (ESR) Top 10 Trends in Background Checks’ for 2012. To view the list of trends, visit http://www.esrcheck.com/ESR-Top-10-Trends-in-Background-Checks-for-2012.php. (more…)

A class action case filed against a large financial institution – one of the nation’s top 10 banks – shows once again that legal compliance is a critical part of any background screening program.  The lawsuit was filed on behalf of an employee alleging violations of the federal Fair Credit Reporting Act (FCRA). According to a press release from the Attorneys for the Plaintiff, the lawsuit alleges that the financial institution obtained background checks in violation of the FCRA and failed to provide required notices.  The Plaintiff seeks to represent a class of all of the financial institution’s employees and job applicants for the past three years. (more…)