Employment Screenings Need to Follow FCRA Guidelines

Due to a failure in the employment screening process, a major U.S. trucking company agreed to a settlement in a class action lawsuit.  The total amount of the settlement is $4.4 million, paid out to 160,000 persons who applied for positions but were not hired.

The lawsuit, which was brought by an applicant, claims that the company failed to follow FCRA guidelines when the applicant was denied a position after the company performed an employment screening on him.  The company did not disclose to the applicant that he could see a free copy of his background check, which is a violation of the FCRA, so that he could dispute any negative findings that the background check presented.

The settlement quickly became a class action lawsuit when it was discovered that over 160,000 driver applicants also may have had their rights violated by the company by the company not providing a copy of the background check report to the applicants.  The employment screening included a criminal background check and a motor vehicle history report.

It is important for any company to understand the rules and regulations surrounding the use of employment screening in a hiring situation.  When a background check is run, an applicant has the right to review the findings.  If it is determined that, by virtue of their background check they will be denied the employment opportunity, the FCRA states that a Pre-Adverse Action letter must be provided, along with a copies of the applicants Consumer Rights and their background check.  This is done so that an applicant has the opportunity to see what was found, and to dispute any findings before Adverse Action is taken.  If these important steps are missed, any company will open themselves up for possible litigation for failure to adhere to these important employment laws.

For the full story on this class action settlement over the use of employment screenings, please click here.