In a recent decision from the Middle District of North Carolina, a federal district court found a plaintiff in a Fair Credit Reporting Act (“FCRA”) case to have Article III standing to bring his claims in federal court, relying on the Supreme Court’s ruling in Ramirez last year and so denied an employer defendant’s Motion to Dismiss. The case involved allegations that the employer defendant violated the FCRA by failing to include a copy of the consumer’s background screening report in the “pre-adverse action letter” sent to him. Read on to learn more.
One trend in FCRA litigation is a rising number of claims brought against employers in the background check context. As shown by some recent cases, many prospective employers are not aware of potential FCRA litigation risk concerning background check disclosure issues because template disclosures and notices are frequently provided by third-parties.
In Derrick v. Full House Mktg., 2022 U.S. Dist. LEXIS 38999 (M.D.N.C. Mar. 4, 2022), Plaintiff Derrick Perez Scott applied for employment in March 2019 with Defendant, an employment agency. Based on information in a consumer report provided by Resolve Partners, LLC (“Resolve”), a consumer reporting agency, Defendant determined that Plaintiff was ineligible for employment. On March 15, 2019, Resolve (on Defendant’s behalf) sent Plaintiff the pre-adverse action letter that the FCRA requires employers to provide consumers before taking an adverse action based on information in a...
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