HireRight Lawsuits: Background Check Accuracy and FCRA Claims

How Background Screening Is Regulated

Companies producing background reports for employment decisions are consumer reporting agencies under the Fair Credit Reporting Act. That imposes duties on accuracy, on what may be reported, and on the procedures an employer must follow before acting.

Claims typically allege records belonging to someone else were reported, that expunged or sealed matters appeared, that dismissed charges were shown as convictions, or that outdated information beyond permitted reporting periods was included.

The Legal Duties

Agencies must follow reasonable procedures to assure maximum possible accuracy, and must investigate disputes and correct or delete inaccurate information within statutory timeframes.

Reporting limits apply to older non-conviction information, and many states restrict reporting of arrests without conviction, sealed records and salary history. Employers must also obtain clear written authorisation in a standalone disclosure document, and claims frequently arise where that disclosure was bundled into a longer form.

Remedies include actual damages, statutory damages for wilful violations without proof of loss, punitive damages and attorney fees, which is what makes these claims economically viable for individuals.

What to Do About an Error

Request the report and dispute in writing with the screening company, providing documentation such as court dispositions or expungement orders. The written dispute triggers a statutory investigation obligation that a phone call does not.

Tell the employer at the same time that the report is disputed and explain why, since employers frequently proceed on the assumption a report is accurate. Keep every document and note every date.