Category : Compliance
A recent federal court decision highlights a potential compliance concern for employers regarding their Adverse Action requirements under the Fair Credit Reporting Act (FCRA). In Wright v. Lincoln Prop. Co., the plaintiff alleged that his job offer was revoked after the potential employer received a partial criminal background report that revealed a misdemeanor DUI and multiple felonies. Following their adverse action procedures, the employer sent the plaintiff the partial report with their Pre-Adverse Action Notice.
A week later the employer received the final report that contained the same criminal history information along with “a more thorough summary of other types of searches run by [the background check company], such as credit report”. The plaintiff argued that he did not receive a copy of the final report, and thus stated that the company violated the FCRA. The court concluded that this case will be forwarded to a jury for review.
This case demonstrates the current trend of creative arguments being made by plaintiffs’ attorneys. Employers should review their background screening policy and implement procedures to mitigate legal exposure and possible litigation. An example of a litigation avoidance tactic for employers who rely on partial or interim reports is to always send a subsequent Pre-Adverse Action Notice with the updated report.
If you have any questions regarding your Adverse Action requirements under the FCRA or would like to learn more about CRC’s Adverse Action Fulfillment service, please reach out to our dedicated Customer Care team at 877-272-0266!