Another company has been hit with a class action lawsuit recently because of alleged improper use of information that was found in a consumer report. This time, restaurant chain Dave and Buster’s has been accused of not properly alerting consumers of inaccurate or derogatory information that was found in their background check.
According to the Fair Credit Reporting Act (FCRA), candidates for a job are entitled to a copy of their consumer report. If there are any inaccuracies or discrepancies, they have the right to dispute those before any adverse action is taken against them because of the information that was reported.
The pre-adverse action letter serves to alert the consumer that they have the right to a copy of their report and to see the information that is in their report, as well as the opportunity to dispute any inaccuracies prior to any adverse action occurring. The adverse action letter states that enough time has passed, and because of information that was found in the background check the decision to not hire, not promote, or to terminate employment was made.
It is important for employers to know and understand the procedure for properly notifying the applicant to derogatory information on their background check to avoid and legal implications. By providing both pre-adverse and adverse action notifications, your company is less likely to face law suits such as the one Dave and Buster’s is facing.
Please contact Advanced Reporting with any questions you may have regarding your background screening needs.