The Swelling Tide of Fair Credit Reporting Act (FCRA) Class Actions: Practical Risk-Mitigating Measures for Employers
The swelling tide of class action litigation against employers under FCRA is unmistakable. It cuts across all industries, including retailers, restaurant chains, theatre chains, manufacturers, financial institutions and transportation companies. To illustrate how the threat to employers is concrete, not merely hypothetical, close to a dozen nationwide class actions were filed in plaintiff-friendly venues during just June and July 2014. Generally speaking, employers must comply with the FCRA when they order virtually any type of report from a CRA, including criminal and motor vehicle records checks. Compliance with the FCRA is indispensable for all employers that use background reports to make hiring and employment decisions.