Background Checks – Class Action Investigation

When an employer uses consumer reports to evaluate its employees or employment applicants, the Fair Credit Reporting Act (FCRA) places three different obligations on the employer.

  • The employer must disclose to the employee or employment applicant, in a document consisting solely of the disclosure, that a consumer report may be obtained about the individual for employment purposes.
  • The employer must obtain the employee’s or employment applicant’s written authorization to obtain the report.
  • If the employer intends to take adverse action based in whole or in part on a consumer report, then it must first provide the employee or employment applicant a copy of the consumer report and a summary of their rights under the FCRA, as published by the Federal Trade Commission (“FTC”).

Under the FCRA, the definition of “consumer report” includes a criminal background check used for employment purposes, and the definition of “adverse action” includes “a denial of employment or any other decision for employment purposes that adversely affects any current or prospective employee.”

If you believe your rights may have been violated due to an improper or inaccurate background check, please contact the attorneys below.

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