A Spike In FCRA Lawsuits Against Employers

The Fair Credit Reporting Act is best known as the law regulating provision of credit reports by rating agencies like Experian, Trans Union and Equifax. However, it also regulates other kinds of information, including the kind of criminal and motor vehicle information sometimes accessed by employers. Historically most regulation and litigation involving FCRA has targeted the credit agencies, but that has changed, says a recent report from law firm Littler Mendelson. Employers are now prime targets, and they need to be acutely aware of the law’s compliance requirements. This article provides a summary of employer requirements and potential liabilities under FCRA, concluding with a list of steps employers can take to reduce their risk.