Fair Credit Reporting Act (FCRA) Preempts Tortious Interference Claim, Says NJ Court

The Fair Credit Reporting Act specifically contains a provision that bars
state law claims against employers who “furnish information” to CRAs. In a
recent decision-Saget v. Wells Fargo Bank, N.A., No. 2:13-03544(WJM),
2014 WL 4494801 (D.N.J. Sept. 10, 2014)-the District of New Jersey had occasion
to invoke this provision.

The plaintiff filed suit against the defendant for tortious interference
with prospective economic advantage, alleging that the report prevented him
from obtaining employment in the banking and finance industry. The Court held,
however, that FCRA preempted the plaintiff’s state law claim. This decision
suggests that employers in the banking and finance industry may be able to
avoid state law claims for tortious interference or defamation when reporting
the misconduct or poor performance of former employees to CRAs.

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Posted Under: EBI

Post By Barry Nixon (262 Posts)

W. Barry Nixon is the COO, PreemploymentDirectory.com the leading background screening information portal and online worldwide directory of professional background screening firms and Suppliers to the background screening industry. He co-authored the landmark book, Background Screening & Investigations: Managing Hiring Risk from the HR and Security Perspective. He also is the publisher of award winning newsletters, The Background Buzz and The Global Background Screener, and the author of the Background Checks column in PI Magazine.

In addition, Barry is a past recipient of the elite ‘Top 25 Influential People in Security’ by Security Magazine and past Co-Chair, International Committee for the National Association for Professional Background Screeners (NAPBS). He currently serves as a Global Ambassador for NAPBS.

You can contact Barry at 1-949-770-5264 or online at wbnixon@preemploymentdirectory.com