Written By Digital Content Editor Thomas Ahearn

An auto parts supplier has agreed to pay $950,000 “to resolve claims it failed to get valid authorization before running background checks on job applicants” and allegedly violated the federal Fair Credit Reporting Act (FCRA) that regulates background checks in the United States, according to a report from Top Class Actions.

The plaintiffs in the class action lawsuit claimed the auto parts supplier “violated the FCRA when seeking consent to run a background check as part of its application process” and “allegedly included extraneous information on its disclosure forms that violated FCRA requirements,” Top Class Actions reports.

FCRA 15 U.S.C. § 1681b(b)(2)(A)(i) states that a background check for employment purposes cannot be procured unless “a clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure.”

The settlement benefits current and former employees of the auto parts supplier – which has not admitted any wrongdoing – who signed disclosure, authorization, and digital signature forms on job applications and for whom the company procured a consumer report between January 31, 2015, and February 17, 2021.

The FCRA is federal legislation enacted by Congress in 1970 to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies (CRAs), and to protect consumers from the willful and/or negligent inclusion of inaccurate information in their consumer reports.

Employment Screening Resources (ESR) is a service offering of ClearStar, a leading Human Resource technology company specializing in background checks, drug testing, and occupational health screening. ClearStar offers background check solutions for employers that comply with the FCRA. To learn more, contact ClearStar.

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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