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Employers Seek New Resources To Avoid FCRA Lawsuits

The Fair Credit Reporting Act was enacted to protect the accuracy, fairness and privacy of information used in employment decisions. FCRA rules dictate how companies can use information collected through employment screening consumer reports when evaluating job applicants. Under the FCRA, candidates have the opportunity to review and dispute incorrect information and seek restitution in the form of litigation.

Many applicants are quick to take employers to court, according to Markets and Research. The number of lawsuits for FCRA violations during employment screenings increased 67 percent between 2014 and 2015. Major brands like Amazon, Wells Fargo, Hertz, Bank of America and Home Depot found themselves in recent legal battles due to improper application forms and failure to share information with candidates.

The FCRA does not stop employers from using background screening solutions. The legal troubles stem from a failure to comply with specific rules - and often the mistakes may seem fairly small. The simple act of adding one too many questions on an individual form can get companies in trouble with the FCRA.

The key is to be fair with use of information and comply with the FCRA. Companies should consult with legal counsel to ensure compliance in their background screening process. Employers can help ensure compliance by partnering with an organization that understands both state and federal regulations regarding employment screening and information privacy.

OPENonline uses excellent customer service to help partners stay in compliance with regulations while providing unparalleled investigative, screening and hiring solutions. For more information, contact us or download our eBook.

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