Employer Lessons In Avoiding FCRA Violations

Law360, New York (March 17, 2017, 10:43 AM EDT) -- The federal Fair Credit Reporting Act outlines a strict procedure that employers must follow when they obtain criminal background reports, credit histories and other background reports on employees and applicants from a third party which is engaged in the business of preparing such reports. All such reports are called "consumer reports" under the FCRA.

A negligent violation can entitle an employee/applicant to recover actual damages, attorney’s fees and court costs. A willful violation allows an employee/applicant to recover statutory damages ranging from $100 to $1,000 or actual damages (whichever is higher),...
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