August 18, 2015
Employers, beware: a recent rash of class action suits regarding Fair Credit Reporting Act (FCRA) violations, specifically regarding disclosure provisions, poses new compliance requirements for materials you distribute to prospective employees. A common theme finds plaintiffs alleging that a defendant employer failed to make a proper disclosure, which requires any consumer report procured for employment purposes to contain in writing a clear and conspicuous disclosure, in a document consisting solely of the disclosure. It is clear from recent cases that courts specifically are growing intolerant of disclosures that contain language waiving an employer’s liability. When it comes to FCRA compliance, the message from courts to employers is clear – less is more.

Employers should review any materials they provide to applicants in connection with pulling credit or other consumer reports, and carefully review for adherence to proper disclosure requirements. For more information, please click here.