Employer Victories In Recent FCRA Class Actions

The Fair Credit Reporting Act addresses the use of background checks by employers (as well as credit reporting itself and access to consumer credit agencies’ data by businesses and insurers). The law requires that before procuring a background report, the employer must get the subject’s authorization, and that before taking an adverse action based even partially on the information, it must provide the subject with a copy of the report and a summary of the person’s right under FCRA. The plaintiffs’ bar has been flooding the courts with class action lawsuits asserting technical violations of FCRA, says this discussion from employment law firm Littler, but in some recent cases, employers have notched significant victories. This discussion looks at some of those cases and makes some suggestions for employers who want to ensure they are in a strong position should they be challenged.