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Two job seekers in Chicago claim they were denied employment due to background checks that contained non-reportable criminal records data.

Both individuals filed lawsuits that alleged their rights under the Fair Credit Reporting Act (FCRA) were violated.

Case One

Years ago, a man named Ahmad Khalid was convicted of crimes in Cook County, Illinois. After the appropriate amount of time had passed, Khalid petitioned to have those records sealed so they would not show up on a background check or any other consumer report. The judge agreed to this request and initiated the process.

That should have been the end of this story. When records are sealed, they should not be available to the public. Knowing this, Khalid applied for work through a staffing agency in December, 2016. He was on track to become a maintenance worker at a local apartment complex.

The staffing agency ordered a background check on Khalid. His report allegedly contained information about his criminal convictions. According to the lawsuit, these convictions were also listed multiple times, thus giving the impression that Khalid had additional convictions on his record.

None of the convictions should have been displayed in a background report. Upon learning that they were, Khalid sought assistance and filed a lawsuit. The suit claimed that Khalid was denied employment because his background check provided information that should not have been included.

Case Two

The circumstances of the second case are similar to the first. Jeneen Scott was convicted of a crime in Cook County about a decade ago. Since then, she petitioned to have her criminal record sealed. A judge agreed, and the conviction was officially removed from public view.

In 2016, Scott applied for a job and went through the standard interview and background check process. She was subsequently denied employment. According to Scott, this happened because her report revealed a criminal conviction that should not have been accessible to potential employers.

After being turned down for employment, Scott sought legal assistance. She filed a lawsuit through the same firm that is handling Ahmad Khalid's case.

What We Can Learn from These Lawsuits

The lawsuits were filed on the same basis: criminal records that had been officially sealed were made available in consumer reports. Both individuals who were negatively impacted are seeking monetary damages for their losses, as is allowed by the FCRA.

It is essential to remain compliant with FCRA regulations. Had the companies that prepared the background checks followed proper procedure, they could have avoided these lawsuits and accompanying complications. In both cases, electronic updates were available that confirmed the conviction data was not to be used in any consumer report.

Protect Your Business

We've seen a sharp increase in FCRA related lawsuits recently. If your hiring and screening policies are not compliant with state and federal laws, then your business could also be at risk.

The screening experts at Backgrounds Online work hard to keep up with relevant regulations and build background checks that only contain current, accurate and reportable data. We help our customers remain compliant throughout the screening process. If you have questions or would like to discuss setting up a screening account, contact us for assistance.