Is your company making some of the same hiring mistakes as Disney, Whole Foods, Dollar General, and Kmart? – just to name a few… These companies recently paid millions in class action lawsuits due to violating FCRA (Fair Credit Reporting Act) hiring practices. According to McAfee & Taft, many issues may stem from third party vendors not initiating checks in accordance with FCRA compliance.
Are these mistakes and lawsuits preventable? Or has FCRA hiring practices become so complicated that it’s almost impossible to avoid multi-million lawsuits?
To help companies avoid the lawsuits, we recently hosted a webinar with John Robinson, HR ProFile’s Compliance Officer, about FCRA compliance and the steps to take in the event of Adverse Action. To view this webinar, go to FCRA: Are YOUR Employment Screening and Background Checks FAIR for your Applicants?
Before following Action steps, it’s important to understand, that the FCRA is a Federal Law that regulates the collection, assembly and use of Consumer Report Information. Be aware that FCRA applies to Credit Bureaus, Data Furnishers, Consumer Reporting Agencies (CRA’s), Employers, and Landlords.
Let’s take a closer look at each step. First, be aware that BEFORE a Background Check is conducted, Disclosure and Authorization is required.
Since this process has legal implications, we recommend consulting an attorney to review all documents and procedures. To listen to the entire webinar, click here:FCRA: Are YOUR Employment Screening and Background Checks FAIR for your Applicants?
Disclaimer: We are not practicing counsel and this blog is not intended to be legal advice. This blog contains guidelines, but if you want legal advice you will have to consult your attorney.
Blog Post by: Jennifer Holt
1) McAfee & Taft: The Fair Credit Reporting Act: Why Background Checks are Fueling the Latest Wave of Class Actions. Josh Solberg.