Thousands of job applicants have filed class action lawsuits, claiming the Defendant Employers’ Authorization forms are invalid because they contain extraneous information.
The lawsuits claim the Employers’ Authorization forms contain, among other things:
- release of liability
- applicant admission that the applicant has not knowingly withheld any information
- the application does not create an employment contract
- the applicant waives the receipt of a copy of any public record
Other charges claim the Authorizations are included on the same page as numerous other statements, instead of on a separate page that consists solely of the Authorization and Disclosure, as required under the FCRA and some Authorizations fail to advise the applicant that a consumer report will be obtained.
In the past few months alone, nationwide class actions have been brought against Extended Stay America Hotels, Nine West Holdings, Disney, CVS, UBS, K-Mart, Publix, O’Reilly Auto Parts and Domino’s Pizza.
Online applications are not the issue. Electronic and paper forms are OK, as long as they conform to the FCRA.
There are revised Employment Authorization and Disclosure forms which POE recommends our clients begin utilizing can be found at our website. Click Here to download the revised forms.
Before you begin screening, the one page Authorization should be dated and signed by the applicant and retained by you, the employer. Before you begin screening, the 4 page Disclosure should be dated and signed by the applicant. The applicant should be given a copy of the disclosure and you, the employer, should retain the original. Additionally, before you begin screening, the applicant must be given a copy of the federal notice entitled, A Summary of Your Rights Under the Fair Credit Reporting Act.
In light of these cases and the probability that more will follow, POE will monitor the situation and advise of further revisions or recommendations, on an ongoing basis. For all FCRA notices and forms for Employment, Click Here