Posted by & filed under Legal News and Compliance.

A large national retailer has come to a $3 million settlement over allegations that the company violated the Fair Credit Reporting Act (FCRA).  The allegations centered round the fact that the retailer did not provide proper notification to over 65,000 applicants who noted that updates were not made on the “statement of rights.” 

Before an employer takes adverse action against an applicant due to the results of a background check, they are required to provide the applicant with a statement of rights.  This is a document that informs the applicant what their rights are under the FCRA.  This is the legal duty of an employer, and if these documents are not maintained or FCRA regulations are not followed, it opens up the employer for potential litigation. 

This is something that can easily be overlooked if proper attention is not made to FCRA and/or EEOC updates.  PeopleG2 provides all of its clients with the proper forms and notices for the purposes of conducting background checks.  This includes everything associated with the adverse action process.  With all of the changes that occur with regards to fair hiring practices, it is important to stay up to date on policies and procedures for background checks and adverse action. 

The employment screening aspect of the hiring process is one that should always be handled by a company like PeopleG2 that makes it a part of their mission to keep clients informed of important changes to employment laws and regulations.