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Supreme Court and Technical Flaws of Background Checking Paperwork

Blog Post created by 1002074 on May 16, 2016

The alarm bells have been sounding for the last few years about getting your federal Fair Credit Reporting Act paperwork in order.  The proliferation of class action lawsuits around proper release forms and the pre-adverse and adverse action paperwork has cost companies millions of dollars.  In large part, the class action suits have been driven by a Ninth Circuit Court (the federal court that covers California) ruling that identified that technical flaws in your company's background checking documents was "injury" enough to have standing.  This change in the barrier to having standing in federal court made the creation of class action lawsuits very easy to file, and to win.

 

Today's six to two ruling sends the matter back to the Ninth Circuit, but essentially states that in many cases the plaintiffs have to show some injury beyond a technical flaw in the company's process.  You can read the full ruling HERE.

 

Will this ruling abate the rising tide of FCRA driven class action lawsuits?  Only time will tell.

 

If you are concerned about being complaint with the FCRA, CAI is glad to help!  We can also help you with your background checking needs.  For more information please contact Kevin W. von der Lippe at (919) 878-9222, (336) 668-7746 or by e-mail; kevin.vonderlippe@capital.org.

 

*Capital Associated Industries Services Corporation is a licensed investigative agency, specializing in corporate pre-employment background screening. Our corporate agency license is BPN 001473P11.

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