2022FCRA

Written By Digital Content Editor Thomas Ahearn

On July 19, 2022, a former employee of a logistics company filed a class action lawsuit that claimed the alleged procurement of background checks for employment purposes without the required disclosures and written authorization in violation of the Fair Credit Reporting Act (FCRA), according to a report on ClassAction.org.

Under FCRA Section 15 U.S.C. § 1681b(b)(2)(A)(i)(ii) a background check report may not be procured unless (i) a “clear and conspicuous disclosure has been made in writing to the consumer” in a document that “consists solely of the disclosure” and (ii) the “consumer has authorized in writing” the procurement of the report.

A copy of the complaint available on ClassAction.org that was filed in the United States District Court, Central District of California stated that the plaintiff alleged “on information and belief” that the defendant logistics company “failed to comply with the requirements under the FCRA because they, among other things:

  • Included superfluous information within the disclosure …
  • Buried the disclosure with small font …
  • Failed to obtain proper authorization before procuring a consumer report …
  • Included a liability waiver …
  • Included a purported authorization for third parties to release information … and
  • Fail[ed] to include a summary of rights.”

The report on ClassAction.org stated the lawsuit seeks to represent current, former, and prospective employees of the logistics company who applied for a job and had a background check performed within the five years before the complaint was filed and until the date that final judgment is entered. The report is available here.

The FCRA 15 U.S.C § 1681 was enacted by Congress in 1970 to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies, and to protect consumers from the willful and/or negligent inclusion of inaccurate information in their consumer reports. A copy is available here.

Employment Screening Resources (ESR) – a service offering of ClearStar, a leading Human Resources technology company specializing in background, drug, clinical, and occupational health screening – provides background check services for employers that comply with the FCRA and state laws. To learn more, contact ESR today.

NOTE: Employment Screening Resources (ESR) – a service offering of ClearStar – does not provide or offer legal services or legal advice of any kind or nature. Any information on this website is for educational purposes only.

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