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Verified Credentials May 6, 2020 12:00:00 AM
The Ninth Circuit Court of Appeals has recently issued a few well-publicized decisions on Fair Credit Reporting Act (“FCRA”) disclosure and authorization requirements. We have previously discussed two marquee decisions, Gilberg v. California Check Cashing Stores, LLC and Walker v. Fred Meyer, Inc., both of which provide employers with valuable insight into what may or may not be allowed in their background report disclosure and authorization forms.
As most employers know, the FCRA has specific disclosure and authorization requirements before an employer can obtain a background report from a consumer reporting agency, like Verified Credentials, for employment purposes. You can check out a quick refresher on these requirements here.
To add to the ever-expanding list of court decisions interpreting the FCRA’s disclosure and authorization requirements, the Ninth Circuit has recently issued its opinion in Luna v. Hansen and Adkins Auto Transport, Inc.
According to the decision, the employee that brought a suit against his employer alleged that the employer violated the FCRA’s disclosure and authorization requirements “by providing a FCRA disclosure simultaneously with other employment materials, and by failing to place a FCRA authorization on a standalone document.”
The Ninth Circuit disagreed with these arguments and upheld a previous summary judgment decision in favor of the employer, stating that the employee’s arguments are “thwarted by the statute itself.”
In addressing the employee’s arguments, the Ninth Circuit provides some useful interpretations of the FCRA’s disclosure and authorization requirements:
The Luna decision provides employers with some helpful insights into FCRA disclosure and authorization requirements. Keep in mind that this decision only impacts jurisdictions within the Ninth Circuit. However, even though the direct impact may be limited to the Ninth Circuit, the court’s interpretations should still give employers enough to consider when crafting their disclosure and authorization forms.
Please consult with your legal counsel to follow and apply the latest court interpretations of the FCRA. They can help you make sure that your employment practices fit in with the latest FCRA-related court decisions and opinions.
On July 30, 2024, the Federal Deposit Insurance Corporation (FDIC) approved the Final Rule to Revise FDIC Regulations Concerning Section 19 of the...
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The Fair Credit Reporting Act’s (FCRA) disclosure requirements haven’t always been clear to employers. A recent update to a long-running case, Walker...
The legal landscape surrounding background checks seems to be constantly changing. With the multitude of Fair Credit Reporting Act (FCRA) lawsuits...