New Class Action Lawsuit against Major Financial Institution for FCRA Violations Demonstrates Importance of Legal Compliance

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…

Adverse Action Letters under the Fair Credit Reporting Act (FCRA) and Employment Screening Background Checks

By Lester Rosen, ESR President From the ESR mail box: Here is a frequently asked question dealing with the federal Fair Credit Reporting Act (FCRA) and the pre-adverse and post-adverse action notices.  Suppose an employer has two finalists for one position. The employer submits both names for background checks and both candidates have clear background…

New Case Demonstrates How the Details are Everything if Taking Adverse Action on a Current Employee Due to a Background Check

A new federal district court case demonstrates the importance of handling the adverse action process correctly when terminating an existing employee due to an unsatisfactory background check. In the case decided on February 26, 2010 by the U.S. District Court for the Southern District of Ohio (2010 U.S. Dist. LEXIS 17373), an employer ran a…