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Friday, January 27, 2023

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Ninth Circuit Decisions Outline Why Stand-Alone Disclosures Are So Important to Avoid Liability!

Ninth Circuit Decisions Outline Why Stand-Alone Disclosures Are So Important to Avoid Liability!

The National Law Review published this article outlining Ninth Circuit decisions and requirements for Article III standing. The decisions also clarify when extraneous information on background screening disclosures can put employers at risk. Background screening disclosures and authorizations continue to be an area of litigation and it is important to get it right if you want to avoid lawsuits.

The Ninth Circuit decisions in two recent cases clarify when a plaintiff has established Article III standing under the Fair Credit Reporting Act (FCRA). Section 604(b)(2)(A)(i) of the FCRA requires that before a consumer report may be obtained on a consumer for employment purposes, the employer must provide the consumer with a “clear and conspicuous disclosure…in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes.” Additional and extraneous language added to the disclosure is risky and can often land a company in a lawsuit.    

Compliance with the FCRA can be challenging and legal decisions occur regularly that can make staying informed very difficult. Specific standards and processes are paramount to a quality, compliant employment screening program. That’s why OPENonline is with you every step of the way. To learn more about our capabilities and how our unparalleled suite of background screening services can save money with cost-effective solutions; as well as increasing productivity and mitigating risks, contact us at 800-935-6736.

The Federal Trade Commission also provides resource for employers. They produce guidance on background checks for prospective employees.

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This is not legal advice, for legal advice please seek legal counsel.

#backgroundchecks #backgroundscreening #FCRA #compliance #legalcompliance #hiring #OPENonline

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