The FCRA is the new FLSA
Recent multi-million dollar settlements highlight the importance for employers
of complying with the Fair Credit Reporting Act (FCRA) and highlight that,
when it comes to class action lawsuits in the employment-law context, the
FCRA is the new FLSA!
The FCRA has very specific requirements employers must comply with if they
engage a background check service providers to compile background reports
on job applicants. These types of reports include credit reports, criminal
background reports, and other reports that have any bearing on someone’s moral
character or reputation. Even employers who do comply with these four broad
requirements tend to miss some of the more intricate, lesser-known requirements
that each step further requires.
The FCRA is not an easy statute to comply with. In addition. It is advisable
that employers conducting background checks of any kind on applicants or employees
consult with competent counsel to review their forms and their processes to
ensure they are FCRA compliant in all respects – even if the background screening
company assures them their forms are compliant.