FCRA disclosure mistakes continue to prove costly for employers
by Ann Potratz
A major national airline has agreed to pay $2.3 million to a class of nearly 44,000 job applicants after failing to adhere to the background check processes outlined in the Fair Credit Reporting Act (FCRA).
The FCRA requires employers to provide applicants with a “clear and concise” disclosure of their rights under the law. In addition, that disclosure must be provided in a standalone document.
It’s the standalone document portion of the law that continues to trip up employers. For example, a mega retailer recently settled a similar class action for $3.7 million, and a major snack-foods brand settled for $2.4 million.
Though the airline made an effort to inform applicants of their rights under the FCRA, it erroneously included additional, unrelated information in the document. It also failed to meet the “clear and concise” stipulation, requiring applicants to read the law itself in order to understand their rights.
Key to remember: Employers must provide applicants with a simple, easy-to-read disclosure of their rights under the FCRA — and the disclosure MUST appear in a standalone document. changes to 401(k) hardship withdrawals are being considered. If passed, the new rules would impact how plan participants may access their retirement funds in urgent financial situations.
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