It's Throwback Thursday where recent headlines remind us to revisit past posts. In this case, The Fair Credit Reporting Act is Not Just About Credit Reports blog post (published in 2016) that covered the rules and guidelines of employers utilizing information in consumer credit reports, particularly financial background information on employment candidates.
Earlier this month, 7-Eleven, Inc. agreed to pay almost $2 million to resolve claims that it violated the Fair Credit Reporting Act when it conducted background checks on nearly 60,000 prospective employees. The company denies all wrong doing. The assertion is that 7-Eleven violated the Fair Credit Reporting Act by not providing the job applicants with a “standalone” notice that a background check would be conducted.
Takeaway: Before running a background check on a prospective employee, employers must ensure that they are complying with the Fair Credit Reporting Act and the "Ban the Box" law (another Throwback blog post).
If you are an employer with questions about the Fair Credit Reporting Act, contact Tracy Armstrong or any member of the Wilentz Employment Law Team at 732-352-9858.
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