5 Tips For Employers Worried About FCRA Class Actions

Law360, New York (May 20, 2015, 3:54 PM EDT) -- Fair Credit Reporting Act class actions against employers that use background checks to vet job applicants or employees have surged in recent years, a trend fueled by the statute's plaintiff-friendly features and multimillion-dollar settlements from big-name companies. 

The FCRA contains a virtual minefield of technical obligations for employers to navigate and offers plaintiffs potential statutory damages and punitive damages, as well as the ability to recover attorneys' fees. Certain FCRA claims may be particularly well-suited for class treatment, and high-value settlements have added fuel to the fire.

"There's been a significant increase in the number of claims against employers over the...

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