Tag Archives: Fair Credit Reporting Act (FCRA)

Class Action Lawsuit Alleges Natural Food Retailer Violated FCRA with Background Checks

A class action lawsuit filed in the U.S. District Court for the Northern District of California alleges Whole Foods Market, a natural and organic food retailer, obtained background checks on job applicants using consent forms that were not legally valid in violation of the federal Fair Credit Reporting Act (FCRA), according to a report from TopClassActions.com available at http://www.topclassactions.com/lawsuit-settlements/lawsuit-news/16770-whole-foods-hit-class-action-lawsuit-illegal-background-checks/. Continue reading

Court Rules Job Seeker May Sue Data Aggregator for Inaccurate Information

The San Francisco, CA-based Ninth Circuit U.S. Court of Appeals has ruled an unemployed job seeker may sue a data aggregator that inaccurately described him as wealthy and well educated by alleging a violation of the federal Fair Credit Reporting Act (FCRA) “without showing actual harm.” The opinion of the court is available at http://cdn.ca9.uscourts.gov/datastore/opinions/2014/02/04/11-56843.pdf. Continue reading

Class Action Lawsuit Challenges Legality of Retail Theft Databases in California for Background Checks

The use of a “Retail Theft Contributory Database” in California is being challenged in a class action lawsuit filed in federal Court in San Francisco on January 31, 2013.  The lawsuit alleges that this type of database violates both federal and state laws by providing information to retailers about detentions for suspicion of theft or fraud but did not result in a conviction. The lawsuit seeks damages of up to $1,000 for every California consumer that was the subject of a negative report within the last two years where there was not a conviction, as well as legal fees and other damages. Continue reading

Use of Commercial Criminal Databases Becoming More Controversial as Employers Face More Risk when Screening

The use of commercial criminal databases and cheap “do it yourself” background check web sites will be the focus of increased scrutiny and controversy in 2014 as employers face more risk when screening job applicants as the demand for accuracy in background check reports rises. This is Trend Number Three of the 7th Annual Employment Screening Resources® (ESR) ‘Top Ten Background Check Trends’ for 2014. For more information about the trends, please visit http://www.esrcheck.com/ESR-Top-Ten-Background-Check-Trends. Continue reading

Class Action Lawsuits for Failing to Perform Background Checks Properly Becoming Even More Prevalent

Given the need for employers to exercise due diligence in hiring and at the same time comply with the complex legal environment regulating hiring, employers can expect to see an increase in legal actions in 2014 – including class action lawsuits – for failing to perform proper background checks or failing to do them right.  This is Trend Number Four of the 7th Annual Employment Screening Resources® (ESR) ‘Top Ten Background Check Trends’ for 2014. For more information about the trends, please visit http://www.esrcheck.com/ESR-Top-Ten-Background-Check-Trends. Continue reading

Class Action Lawsuit against Background Firm Alleging Fair Credit Reporting Act Violations Demonstrates Importance of Legal Compliance

The importance of legal compliance and background checks was underscored in the filing of a class action lawsuit in the Los Angeles County Superior Court on November 1, 2013 against a Florida based background screening firm for violations of the federal Fair Credit Reporting Act (FCRA).  The lawsuit seeks statutory damages that can be $100 to $1,000 for every consumer that was the subject of a background check done using the forms and methods that were the subject of the complaint.  The lawsuit also request punitive damages. The law also provides for attorneys fees. The case is Los Angeles County Superior Court case BR 526352. Continue reading

Background Check Firms Agree to Pay More than 18 Million Dollars to Settle Claims of FCRA Violations

Two background check firms have agreed to pay $18.6 million to settle three class action lawsuits alleging violations of the federal Fair Credit Reporting Act (FCRA) for “failing to take reasonable measures to ensure the accuracy of background check report provided to prospective employers.” A story by TopClassActions.com about the lawsuits is available at http://www.topclassactions.com/lawsuit-settlements/lawsuit-news/5437-background-check-firms-agree-to-18m-class-action-settlement. Continue reading

Credit Reporting Agency Mistakenly Identifies Veteran as Felon on Background Check Report

A Navy veteran who served three tours in Iraq was mistakenly identified as a felon after undergoing a background check to lease an apartment, according to a ‘Bamboozled’ post available on NJ.com at http://www.nj.com/business/index.ssf/2013/11/bamboozled_credit_reporting_fi.html. Continue reading

Webcast Outlining FCRA and Background Checks for HR Professionals Scheduled for September 26

Ory Tucker, the Client Experience Director of Employment Screening Resources® (ESR), will present a live webcast titled ‘The Federal Fair Credit Reporting Act (FCRA) and Background Checks’ for the HR.com Institutes for Human Resources (IHR) Quality of Hire Virtual Conference on Thursday, September 26, 2013 from 2:30 PM to 3:30 PM ET. For information about the webcast and to register for the free event, visit http://www.hr.com/en?t=/contentManager/onStory&StoryID=1376612144688. Continue reading

NAPBS Applauds NBC Today Show Report for Recognizing Importance of Employee Background Checks

The National Association of Professional Background Screeners (NAPBS®) applauds an NBC Today Show report by National Investigative Correspondent Jeff Rossen for emphasizing “the critically important role background screening plays in today’s business environment,” according to a press release from the NAPBS available at http://www.businesswire.com/news/topix/20130820006390/en. Continue reading