Employers are encouraged to closely analyze their hiring practices when it comes to pre-employment screening programs and the vendors they use after a report released earlier this week.
Statistics recently compiled and released by industry experts Webrecon.com (who specialize in identifying and tracking litigious consumers) show staggering increases in litigation against employers, collection agencies and other businesses regarding violations of the Fair Credit Reporting Act.
According to the reports FCRA class actions rose 67% percent in June 2015 compared to June 2014 (2014 set a record for the number of FCRA litigations)
June 2015 reached almost 300 Lawsuits surrounding the FCRA.
Based on Pre-employ.com analysis of the majority of FCRA Class action litigation was based on the following technical allegations:
- Failure to meet the “stand alone” or “sole” disclosure requirements of the FCRA including a release of liability with the disclosure
- Burying the disclosure in application-type questions and state disclosure
- Failure to provide proper pre-adverse action and/or adverse action notice.
- Failure to include a copy of the report or a Summary of Rights with the pre-adverse notice
- Failure to follow procedures to assure maximum possible accuracy of the information.
- Failure to contemporaneously notify consumers with the provision of the report to the user.
- Failure to maintain strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer's ability to obtain employment is reported it is complete and up to date.
Access this useful eBook download now and start reading about what is real and what is myth when it comes to background checks.
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