Major Employers Violate the FCRA

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Madeleine Jones
September 8, 2017

violations sign, fcraThe Fair Credit Reporting Act has numerous provisions in place that are designed to protect workers and job applicants, however, a number of employers have walked right over these “red lines.” When these rights are violated, the individual is entitled to hire a FCRA attorney to pursue compensation for the violation and any damages that may have resulted from the action.

Companies That Crossed the Line

Numerous companies have been caught violating the protections offered under the Fair Credit Reporting Act. Whole Foods failed to notify prospective employees that their credit reports were being reviewed as part of the application process. The company also illegally inserted a release provision within their application forms. This case was similar to cases which were filed against Pizza Hut, Home Depot, and Paramount on the same grounds.

A class action suit was filed in California against the now ubiquitous Uber claiming the company failed to provide applicants with copies of their credit report following denial of their applications on the grounds of information contained within these reports.

Clear Protections for Applicants & Employees

The Fair Credit Reporting Act offers numerous protections of the personal financial information of job applicants and existing employees. These include requirements to notify individuals that a credit report will be reviewed during the interview process and requirements to receive written authorization to review these reports.

The employer is also required to make their intentions clear. This means that they cannot hide or otherwise obscure their intent to review a credit report by burying it within the text of a job application or other documents an applicant or employee may be required to sign.

Finally, employers are also required to provide a copy of the credit report following an adverse action such as rejecting the application or terminating the employee’s employment. However, many employers skip this step and many individuals are unaware that they are entitled to receive this information promptly so that they can dispute any adverse decision affecting their employment.

A FCRA attorney can help recover damages caused by an employer’s actions and violations of the law. The minimum statutory penalties for each act of willful violation can range from $100 to $1000. Individuals may file suit up to two years after they discover the violation or up to five years after the violation has taken place.