The Fair Credit Reporting Act was passed in 1970 to help consumers ensure that information about their credit stayed both private and accurate. However, a new report from Littler Mendelson explains that recently the FCRA has been used as fodder for class action lawsuits that target employers for alleged noncompliance with rules governing how companies should use credit reports, also known as consumer reports, in the hiring process.
The Littler report, “The Swelling Tide of Fair Credit Reporting Act Class Actions: Practical Risk-Mitigating Measures for Employers,” shows where liability for employers under the FCRA is increasing, and provides insight on how companies can mitigate risk.
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