Many businesses require their applicants to be subjected to background checks by pulling consumer reports on prospective employees. This has become much more common recently and although it is not illegal, it is subject to strict guidelines under the Fair Credit Reporting Act.
Under the FCRA, employers must obtain proper authorization from the prospective employee to pull their consumer report. Further, if the employer takes adverse action based on information in the prospective or current employees report, they must first provide a copy of the report to the prospective employee and give them an opportunity to respond to any information contained in their report before a decision is made resulting in adverse action against the prospective employee.
When an employer is not complying with the FCRA, any person who applied to that employer may have had their rights violated. In the case, many individuals may have suffered the same harm and a class action is the only way to prosecute all of the claims efficiently.
If was denied employment because of my background check, can I sue?
Maybe – if the employer did not have proper authorization to request the report, or they made the decision to deny your employment before providing you a copy of the report and an opportunity to respond to any adverse information contained in the report.