A California employer recently settled a class action lawsuit filed against it by an applicant who alleged violation of the Fair Credit Reporting Act (FCRA) in its application process.
Provisions in the FCRA require employers to furnish job applicants with a "clear and conspicuous disclosure" form prior to requesting a consumer credit report. The form must be solely for the purpose of informing the applicant of the request. The plaintiff claims the employer violated this provision when it included a liability waiver with the disclosure form, which he says was confusing to him.
The plaintiff filed the class action lawsuit on behalf of himself and more than 1,000 other affected job candidates. The settlement requires the employer to pay just under $175,000.
Employers who routinely use consumer reports as part of their background check process, need to make sure their procedures comply with FCRA guidelines. Thomas Ahearn "Judge Approves Settlement of Nearly $175,000 in FCRA Class Action Lawsuit" www.esrcheck.com (Mar. 19, 2021).