Background Check Violations Costs Employer $4M

Background Check Violations Costs Employer $4M

US Information Search –A class-action lawsuit filed in Virginia federal court against discount retail chain Dollar General for alleged violations of the federal Fair Credit Reporting Act (FCRA) will be settled for $4 million.

What Employers Must Learn From This Settlement:

As an employer, Dollar General had various violations of the federal Fair Credit Reporting Act (FCRA). These included:

1. Denying employment to applicants prior to providing a copy of their background check report and a FCRA required document “Summary of Your Rights Under the Fair Credit Reporting Act.”

2. Not providing the document in a reasonable amount of time before an adverse decision was made. The purpose of the document is to give the applicant the right and time to dispute the results.

3. Not providing the latest version of the “rights” document.

The lawsuit filed in Virginia claimed that Dollar General “willfully failed to comply with the disclosure and authorization requirements in [the FCRA] prior to obtaining a consumer report for employment purposes.”

In addition, reports that Dollar General “denies any wrongdoing and any liability to plaintiffs or to the putative class members” even though the retail chain agrees to the pay a settlement with a total amount of $4.08 million.

The Dollar General Class Action Lawsuit is Marcum v. Dolgencorp Inc., Case No. 3:12-cv-00108, in the U.S. District Court for the Eastern District of Virginia. extlink

U.S. Information Search is a national background check company located in Rockland County, New York. For specific guidance on FCRA Compliance related to the above issues, visit:

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