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February 4 2016

Phony Job Applicants Targeting Employers Based on Technical Violations

Claims brought against employers under the FCRA arising out of one aspect or another of employers' background investigation procedures have been the litigation de jure recently. Many of these lawsuits have resulted in multi-million dollar settlements. There is a rather pernicious new development in this area. Opportunistic faux job applicants - who have no intention of taking employment with the targeted employers - are completing and submitting employment applications solely to position themselves as the named plaintiff in class action litigation and secure a windfall settlement or litigation recovery. The key take away is that there is a new breed of individuals who are trolling the internet in search of employment applications that arguably fail to comply with the FCRA's notice and disclosure requirements. Prudence should compel you to re-examine your disclosure forms and ensure fastidious compliance with the FCRA.