Employer “Adverse Actions” After Credit Reports Are Garnering Lawsuits

Employers are advised to make sure they fully understand The Fair Credit Reporting Act before using any information that shows up in a these reports to influence an employment decision. Under FCRA, an applicant or employee must be notified before an adverse employment action if the decision to take the action was based on any part of a credit report. Since Jan. 1, 2010, 368 FCRA class-action lawsuits have been filed, and settlements have reached as high as nearly $6 million.