Company Settles "Class Action Lawsuit" for $4.3 million

The company failed to follow the Fair Credit Reporting Act (FCRA) by first obtaining written consent to conduct background checks and second they failed to offer the applicants a copy of their report or the Credit Reporting Agency's (CRA) contact information to obtain a copy.

The proposed settlement would pay the worker that was terminated because of a background check between $2,000 and $4,000 each.

This company was a subcontractor to a large metropolitan school district and provided transportation for children. 

Maybe it is time for you to reevaluate how you perform your employment screening, your consent, and how you notify your applicants of the outcome.  In addition, you should understand what your current CRA is providing and how it is impacted by the FCRA and State Laws.

Recently, we were preparing a consent for a new client.  After reviewing several Fortune 500 companies existing consents, we found NONE of them were in compliance with both the FCRA and the state regulations.  

Companies need to understand that these types of lawsuits and actions by the Federal Trade Commission over violations of the FCRA and state regulations will continue.