Employers, Be Vigilant About FCRA Compliance

Chipotle was recently sued for violations of the Fair Credit Reporting Act (“FCRA”). The lawsuit seeks recovery under both FCRA and California law. This is one of a number of lawsuits that have been filed recently against employers, serving as a reminder that employers must be vigilant about FCRA compliance when conducting background checks on which employment decisions will be based. The named plaintiff in the lawsuit against Chipotle alleges that Chipotle’s FCRA disclosure is buried in its employment application and surrounded with distracting language. However, FCRA requires that such disclosures are made in a “standalone” document, i.e. consisting solely of the disclosure. The plaintiff also claims that Chipotle did not provide her the required summary of her rights under FCRA and failed to provide a box to check to indicate that she wanted a copy of the background check report. So employers, make sure background checks are performed properly, the devil is in the technicalities!