Background checks are assumed seemingly standard and straightforward but as Petco Animal Supplies found the hard way the Fair Credit Reporting Act (FCRA) contains very strict protocols and technicalities that can cost your company millions if not followed precisely.
According to a story published on the Bloomberg Law website (Labor and Employment Section), the Barclays Center, home of the NBA’s Brooklyn Nets, unlawfully denies employment to job seekers with criminal records without giving them required notice of their rights or a chance to explain their convictions, a proposed class of workers alleges (Kelly v. Brooklyn Events Ctr., LLC , E.D.N.Y., No. 1:17-cv-04600, class complaint filed 8/4/17).
Attorneys Michele Haydel Gehrke and Brian K. Morris recently wrote about about a case that may have significant impact on employers. particularly employers facing lawsuits regarding adverse action procedures, FCRA disclosure forms and proper notice of rights paperwork.
Kelly Services has agreed to settle a class action lawsuit for allegedly violating the Fair Credit Reporting Act (FCRA).As mentioned in our white paper - Top 3 FCRA lawsuits and how to prevent them - the background check release form is a top target for class action lawyers looking to capitalize on big paydays. According to topclassactions.com, plaintiffs allege that between July 18, 2012 and January 23, 2014, Kelly Services provided its employees and job applicants with a FCRA disclosure form to conduct background checks that also contained a liability release. Unfortunately, this is in clear violation of the Fair Credit Reporting Act (FCRA).
A win for employers, Fair Credit Reporting Act (FCRA) class action lawsuit case dismissed.
A federal judge in Minnesota dismissed a FCRA class action lawsuit after agreeing with the defendants that her “informational injury” did not meet the burden of proof. Employers that are currently in litigation regarding background check release forms should take note. If your company is not in litigation, this information should be shared with your legal department.