Avoiding FCRA Lawsuits: Consistency is Key

Posted: June 29, 2022

There were 5,406 FCRA lawsuits filed in 2021 and an additional 1,500 lawsuits filed during the first three months of 2022. It’s a scary thought and companies must take the necessary steps to reduce their risk of an FCRA lawsuit. There is no better time than the present to review your company’s background screening policies.

Info Cubic will review the primary best practices for background screening to help your company avoid any potential FCRA lawsuits. First up: consistency is key. It is essential that you are consistent about when you run background checks, the types of checks you are running and why are running them.

Here are a few best practices to follow when conducting background checks:

1. Treat all your job candidates the same. If there are multiple candidates applying for the same position, you must follow the same screening process for each of them. It’s that simple. While there are equal opportunity laws in place that require companies to treat all job candidates equally, you’ll also go a long way in avoiding potential FCRA lawsuits by always following this rule of thumb during the hiring process.
2. Run the same searches on candidates applying for the same position – Avoid running different background check searches on candidates who are applying for the same position. If there are multiple candidates applying for the same job, the same exact searches (i.e., criminal records, reference checks, credit checks, etc.) must be run on each candidate or you could be vulnerable to discrimination charges.
3. Use a consistent approach for reviewing the background checks – It is a good idea to have a process in place on how you will review the results ofbackground checks to make sure it is consistent across the board. Be sure to have your process outlined in writing on you will screen candidates for different types of positions, duties, responsibilities, job titles, locations, etc.
4. Follow the same rejection process for all candidates. It is necessary to have a firm process in place for rejecting candidates. For example, if having a criminal record will disqualify a candidate for a certain position, then you must apply this to all candidates.
5. Follow the same adverse action process for all candidates. You should have an adverse action process outlined and implemented so each candidate goes through the same process.
6. Outline your hiring and background screening processes in advance. It is a good idea to outline the responsibilities of each position in advance to determine the necessary background searches and rejection criterion for each position.

Info Cubic can help you navigate you through FCRA compliance issues. As your background screening partner, Info Cubic will help ensure that you lower your risk and maintain compliance. Contact us today at (877) 360-4636 for a free assessment of your current background screening procedures.

Please consult with qualified legal counsel when developing hiring and background screening procedures.