A recent decision by the United States Court of Appeals for the Third Circuit in Long v. SEPTA should serve as a reminder that companies which use background checks to screen job applicants must comply with certain obligations under the Fair Credit Reporting Act (FCRA) or risk incurring fines, penalties, and the possibility of a lawsuit.
Under the FCRA, an employer is required to provide every job applicant with (1) a copy of their background check report and (2) a copy of “A Summary of Your Rights Under the Fair Credit Reporting Act” before denying employment based upon the information contained in that background check report. A failure by the employer to comply with both of those requirements, and to provide job applicants with an opportunity to review the accuracy of their background check report before a decision is made, may result in a violation of the FCRA.
In addition to the requirements under the FCRA, there are numerous federal, state, and local regulations a company must comply with during the pre-employment screening process and the employment law attorneys at Metz Lewis are ready to provide you with assistance.
This post was written by Sammy Sugiura.