On May 16, 2016, the Supreme Court of the United States ruled in the case of Spokeo, Inc. v. Robins that consumers must prove “concrete injury” in class action lawsuits for alleged “bare” violations of a federal statute.
However, the fact that class action lawsuits involving the federal Fair Credit Reporting Act (FCRA) that governs background checks in the U.S. will remain a potential threat to employers despite recent court rulings dismissing FCRA lawsuits and citing the Spokeo decision as the reason.
The Spokeo decision does not mean that employers can relax when it comes to FCRA compliance. It doesn’t mean that employers have a carte blanche right to ignore the technicalities of the FCRA. Employers certainly still need to ensure that they are in compliance with their obligations and they are working with background firms that understand the FCRA.
Contact our team at POEknows & let us guide you in these compliance issues.