7-Eleven, Inc. recently reached a whopping $2 million settlement to settle a background check class action lawsuit over the company’s background check policies. The background check class action lawsuit alleged that the company failed to provide standalone notice of background checks to 60,000 job applicants in the class. The applicant, Edwardo Munoz, claimed in his class action lawsuit that the convenience store chain violated the Fair Credit Reporting Act by not giving a standalone notice to individuals of background checks.
In the 7-Eleven, Inc. settlement, the company denies any wrongdoing but agreed to settle the claims to avoid ongoing litigation. Munoz argued that the notice 7-Eleven provided of background checks did not meet the standards of the FCRA because it was not in a standalone document and included extraneous information. This lawsuit highlights the importance of FCRA notices for every employer, as well as how critical it is to create standalone FCRA notices.
Randisi & Associates, Inc. specializes in offering businesses of every size FCRA notices that ensure compliance. The law states that employers who obtain background checks or consumer reports on job applicants provide “clear and conspicuous disclosure” that is “in a document that consists solely of the disclosure.” If you do not meet all of those standards, you could be liable for a lawsuit similar to the one that 7-Eleven, Inc. faced or another financial penalty, even if you are not a large national corporation.
You also must ensure that you do not provide an illegal FCRA notice to applicants. An illegal FCRA notification often includes a release of liability. It’s critical to work with a skilled professional like Randisi & Associates, Inc. to ensure that no misleading, extraneous or illegal information is included in your notice.
There are small and mid-sized businesses who were forced to pay fines and penalties ranging from $100-$1,000 per violation as a result of insufficient or improper FCRA notification. Does that not seem like very much? It’s important to consider that you can be charged for every violation .
That means that if you have 10 people in the past 10 years who realize you didn’t provide proper disclosure or that you provided illegal disclosure during the application process, you could be stuck footing a $10,000 penalty on top of legal expenses.
James P. Randisi, President of Randisi & Associates, Inc., has since 1995 been helping employers protect their clients, workforce and reputation through implementation of employment screening and drug testing programs. Mr. Randisi can be contacted by phone at 410.494.0232 or Email: info@randisiandassociates.com or the website at www.randisiandassociates.com. This post does not constitute legal advice. Randisi & Associates, Inc. is not a law firm. Always contact competent employment legal counsel.
