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.