Pre-Employ Blog

Healthcare Management Group Hit with FCRA Background Check Lawsuit

Posted by Bob Mather on June 13, 2017

According to McKnight's long-term care news, an Indiana-based healthcare management group has been hit with a class-action lawsuit after a job applicant claimed she was denied a position at the company based on an allegedly false background check report.

Stethoscope.pngThe woman applied for a nursing position in March 2017 with the Ide Management Group (IMG), which does business as Cathedral Health Care Centers and operates skilled-nursing and assisted living facilities in Indiana, Illinois and Iowa. The woman later filed a lawsuit against the Group in April 2017, claiming that she interviewed with the company and was told that she would be offered the position upon a successfully passed background check.

However, IMG decided not to hire the woman after the completed report by an unnamed consumer reporting agency showed that she had multiple felonies, including charges for possession of drug paraphernalia and theft.

Despite the report's findings, court documents showed that she had never been convicted of a felony. When she requested a copy of the background check report from IMG, the Group refused to provide her with it. Furthermore, the Group did not give her a written description of her rights under the Fair Credit Report Act (FCRA).

Her class-action lawsuit against IMG claims that they clearly violated the FCRA and was filed on behalf of the "hundreds, possibly thousands" of IMG job applicants over the course of the past five years that the company screened using a consumer reporting agency and those that the company "took adverse action against" without providing copies of their reports or consumers' rights, as the lawsuit reads.

Finally, the woman is seeking punitive damages for violation of the FCRA, actual damages for financial hinderance and damage to her reputation.

Similarly, Starbucks is currently facing a class-action lawsuit brought earlier this year by a job applicant in Colorado who claims that he was denied a position at the coffee giant because of an inaccurate background check report. He's also suing for alleged FCRA violations.

Not interested in getting into an FCRA lawsuit? Download our guide to learn more about these lawsuits and how to prevent them.

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Topics: Lawsuit, FCRA, FCRA Compliance