Can I Sue an Employment Background Check Company? - FindLaw
Employment background check companies must abide by federal and state laws when they screen job applicants. Employers rely on the information screening companies provide, which can make or break your job prospects. You may be able to sue an employment screening company if:
- They violate the Fair Credit Reporting Act (FCRA)
- They refuse to give you a copy of the report
- There are background check errors or incorrect information
- They mishandle your information and you become a victim of identity theft
If you've been a victim of any of the above, you should think about getting a case review from a consumer protection lawyer.
FCRA Violations
The Fair Credit Reporting Act (FCRA) is a federal law enforced by the U.S. Federal Trade Commission (FTC).
According to the FTC, background reports are considered "consumer reports" when they are used for employment purposes. Under the FCRA, a company that sells or provides these reports is called a "consumer reporting agency" subject to the FCRA. That's why an employment background screening company has to follow procedures under FCRA.
The FCRA requires employment screening companies to provide "maximum possible accuracy" about employee-applicants. This means making sure the report doesn't incorrectly incriminate you or otherwise contain wrong information that could harm your chances of obtaining employment.
Screening companies must also make sure their clients (employers) are legitimate and will only use the reports for employment...
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