“FACTA” May Provide Defense Against Background Check Lawsuits

With the number of class-action lawsuits filed against employers performing criminal background checks on potential employees growing, companies may find an effective defense in amendments made to the Fair Credit Reporting Act by the Fair and Accurate Credit Transaction Act of 2003. FACTA was enacted, in part, to allow employers to conduct workplace misconduct investigations by third parties without being subject to the FCRA’s more onerous provisions.