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A regional supermarket chain was accused of violating the Fair Credit Reporting Act (FCRA) by running background checks without the applicant's consent.

Basis of the Lawsuit

There are several steps to every hiring process. One of the most crucial usually occurs towards the end - running FCRA compliant background checks. When this happens, there are specific laws that must be followed. Two Wegmans employees claimed that their employer was not in compliance with an essential FCRA regulation.

According to the employees, Wegmans ran background checks on them without first obtaining their consent. Most employers run pre-employment reports to help them make critical hiring decisions, but it is necessary to acquire permission from the applicants first.

FCRA Regulations for Running Background Checks

The primary goals of the FCRA are to prevent discrimination, protect consumers and promote privacy for consumer information. One FCRA rule stipulates that employers must have written authorization from a job seeker before they can initiate a background check.

When an applicant provides consent and a background check is run, the FCRA also decrees that the consumer has the right to receive a copy of their report and dispute the results if necessary. This might happen if the person claims that some of the data on their report is incorrect or for a person with the same first and last name. If an employer runs a report without acquiring permission, then it is possible that they will make a hiring decision based on those results regardless of whether or not the report was seen by the subject.

What the Plaintiffs Seek

The case against Wegmans is a class action lawsuit that was filed by the law firm of Thomas & Solomon. It claims the employer did not provide proper notification about a background screening or include a form to request authorization.

According to the plaintiffs, the documentation from Wegmans also attempted to release the company, employees (past and present) and other relevant entities from any and all liability regarding the dissemination of an applicant's information via a background check report.

Language in the lawsuit states that the employer acted willfully and had no regard for the rights of the plaintiffs. The suit was filed on behalf of every employee and applicant who was the subject of a background check without their knowledge over the last five years. It asks for a minimum of $100 and a maximum of $1,000 for every alleged violation.

The Vice President of Media Relations for Wegmans issued a response. She said: "We are confident that our process for screening job applicants, including the disclosure that a background check will be conducted, fully complies with federal law."

What You Should Know About Running Background Checks

It is essential for employers to follow regulations established by the FCRA as well as any relevant local and state laws. We often recommend developing and maintaining written documentation about your hiring process. This can include specific rules for running background checks.

Before initiating a report, you must have signed permission from the applicant. When you do, you may only review data that can legally be used for employment screening. Working with a consumer reporting agency that provides FCRA compliant background checks helps ensure your company follows all relevant rules.

If you have questions about the background check process or need the necessary documentation to request permission for a report, contact the specialists at Backgrounds Online. We are here Monday – Friday from 5am to 5pm to answer questions and provide assistance.