POEknows has recently updated our Employment Consumer Report Authorization and Employment Disclosure forms. Due to the growing number of employers that are being targeted for class action lawsuits, we analyzed the allegations and we are recommending changes in order to ensure that our clients are utilizing authorization forms that follow, strictly, the Fair Credit Reporting Act (FCRA).
According to reports on the latest class action lawsuit against a major market retailer, this retailer was not only performing background checks before obtaining proper consent (Authorization) from the consumer, but the consent also contained multiple statements that are considered extraneous, as well as language that should not be included in an Authorization form.
The plaintiff claims during the hiring process, this company obtained a background check using a consent form that is not legally valid. The Authorization in question ‘releases from liability’, those who provided information about the applicant. The Authorization also included the consumer’s acknowledgement that the application does not necessarily create an employment contract and a statement that the applicant waives the receipt of a copy of any public record.
Lastly, there was a statement of admission, by the applicant, that the applicant has not knowingly withheld any information. The FCRA requires that authorizations be pristine documents and contain nothing more than the required disclosures and the requested authorization. Any statements that involve the consumer waiving any rights that are given under the FCRA makes the authorization invalid.
POEknows hopes to help our clients with compliance issues and avoid from being drawn into this growing list of class action lawsuits.