Background Checks: “Clear and Conspicuous” Disclosure

Due to a recent increase in Fair Credit Reporting Act (FCRA) class action lawsuits, employers should review job application materials to ensure compliance with the FCRA.

Under the FCRA, employers must ensure that consumer report disclosures are “clear and conspicuous, are absent of any extraneous information, and are given in stand-alone documents”.

Faegre Baker Daniels LLP highlights a recent class action lawsuit against Walmart:

“Randy Pitre, the lead plaintiff in Randy Pitre v. Wal-Mart Stores Inc., No. 8:17-cv-01281 (DOC/DFM), alleges Walmart’s job application failed to provide a clear and conspicuous disclosure to applicants informing them that Walmart would be obtaining a background check…

According to Pitre’s complaint, Walmart’s job application included extraneous and confusing information that precluded it from meeting these requirements. The complaint alleges Walmart’s job applications did not comply with the FCRA from 2012 through 2015”.

Employers should be aware that some states may impose additional background check disclosure requirements, and should review all applicable state laws.

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The information included in this blog post originally appeared in an article from Faegre Baker Daniels LLP on January 29, 2019, written by Terran C. Chambers.

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