In the state of California, two statutes the Investigative Consumer Reporting Agencies Act (ICRAA) and the Consumer Credit Reporting Agencies Act (CCRAA) both govern the steps employers must take before ordering a background report on a potential or current employee. The states Supreme Court recently confirmed that employers there must ensure compliance with both statutes or face liabilities. In the case of Connor, a class action lawsuit was filed after the employer obtained reports without first getting a written authorization from its employees. The company argued that both statutes overlapped, but the Court rejected the argument, finding that employers can comply with both statutes without undermining the purpose of either.
