Employers Beware: FCRA Class Actions Are On The Rise

Law360, New York (June 11, 2014, 6:42 PM EDT) -- Don't be fooled by its title: the Fair Credit Reporting Act[1] reaches far beyond the realm of credit reporting and governs a broad spectrum of industries. Indeed, the provisions of the FCRA apply to any business entity that seeks to use a "consumer report" — which broadly includes anything from a credit report to a criminal or even motor vehicle background check[2] — for any "employment purposes."[3] This includes the use of such reports to evaluate an individual for potential employment, as well as to evaluate a current employee for promotion or termination.[4] The consequences of a FCRA violation can be substantial — the statute provides for a civil private right of action and permits recovery of actual damages, statutory damages, punitive damages and attorneys' fees and costs.[5]...

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