Screening News Network Blog

FCRA Compliance: What You Need to Know

Background Checks, EEOC & FCRA

“FCRA” is the abbreviation for the “Fair Credit Reporting Act”. This federal law was enacted in 1970 and was originally designed to help consumers resolve inaccuracies in their credit reports.

In 1996, the scope of the FCRA was expanded to include other reports about consumers, including background reports prepared for employment screening purposes. FCRA Compliance is mandatory for any employer using a third party to conduct background checks.

Adverse Action: An Employer's Guide

Background Checks, EEOC & FCRA

Adverse action is a requirement of the Fair Credit Reporting Act, or FCRA. The FCRA governs how the information for consumer reports is collected and the steps employers must take if they make an adverse decision based on information gathered by a third party background screening company. These companies are known as Consumer Reporting Agencies (CRAs).

Courts Shut Down Professional Plaintiff


Businesses have always had to worry about frivolous lawsuits. Con-artists “slip” and fall, others find a bug in their food. Sometimes the hot coffee is just too hot. All of these kinds of things have cost companies money over the years, but now some of those who are out to make a quick buck are evolving.

How Just v. Target Differs from other FCRA Complaints

EEOC & FCRA, Videos

I have written countless articles about FCRA lawsuits over the last few years, and it seems they almost always end with the big-name company paying out millions to make the case go away. So I was intrigued by the judge’s decision to dismiss a recent case against Target, saying he did not believe the company “willfully” did anything to break the law. I reached out to our friend and expert Mary Poquette to try to figure out why this case ended so differently.

The Supreme Court Makes Long-Awaited Decision in Spokeo FCRA Case



Hoping it would stem an ever-rising tide of class action litigation under the Fair Credit Reporting Act (FCRA), employers and their background screening partners have been waiting for the U.S Supreme Court to rule in Spokeo, Inc. v. Robins. The question presented to the Court was whether actual damages must occur in order for a legal complaint to have “standing” to sue, meaning there is a basis for the plaintiff to challenge the conduct in court.

FCRA Cases and the Justice Antonin Scalia Void


Employers and their background screening partners were optimistic a Supreme Court ruling in Spokeo v. Robins would establish an actual injury requirement for FCRA-based class action cases to advance through the courts. The Spokeo ruling was expected to settle the controversy created by divided lower court decisions on whether “no-injury” cases have legal standing based upon statutory violation alone or if specific injury must occur.

FCRA Compliance: Lawyers Fishing for Big Lawsuits [Video + Transcript]

EEOC & FCRA, Videos


The Fair Credit Reporting Act has several roles, but when it comes to background screening for employment purposes, it’s the basis for some of the most aggressive and costly lawsuits. Creating the right system before any hint of trouble can not only save you headaches -- it could save your shirt. In this piece, Jennifer Gladstone speaks with some of the most knowledgeable people in the industry about how to do everything right. 


Compliance Horror Stories Part 2: The Curse of the Vet Tech

Background Checks, EEOC & FCRA, Videos

EBI loves Halloween! Our office is already decorated, costumes are being planned and the excitement is building. In honor of that ghoulish day we thought it would be fun to tell some scary stories of our own.

In this second of three videos in our Compliance Horror Stories series, attorney Larry Henry of Rhodes Hieronymus once again uses a real-life example to warn us of all the terrible things that can happen when compliance and good hiring policies are ignored. Things might not go bump in the night in these tales, but if you are an employer or HR manager, these issues are just as terrifying! 

The Impact of the Safe Harbor Ruling on Your Screening Program

EEOC & FCRA, Safe Harbor

A bit of background … Effective in 2000, the Safe Harbor Framework was established jointly by the U.S. Department of Commerce and the European Union (EU). One of its purposes was to facilitate trade between European countries and the U.S. by streamlining data flows between countries. Safe Harbor allowed U.S. companies to self-certify compliance with the privacy principles of the European Union Data Protection Directive and, as a result, legally transfer private consumer data between European Union countries and the U.S.  According to its critics, however, the Safe Harbor Framework allowed private data to flow from European Union countries to the U.S. without adequate protections being in place.—The Next in a Long Line of Adverse Action Lawsuits


Do we sound like a broken record yet? I sure feel like we do, but we can’t help it when so many giant corporations keep getting caught up in the same troublesome webs. and Staff Management, a company Amazon uses to provide temporary workers, are among the latest subjects of class action litigation alleging violations of the Fair Credit Reporting Act (FCRA).

Ripple Effects - Activity in Employment Screening

Ban the Box, EEOC & FCRA

The level of legislative activity, regulatory guidance, and litigation surrounding background checks for employment screening has never been higher. And, as onerous litigation and multi-million dollar settlements become increasingly common, the stakes have never been higher for employers as they seek to balance external requirements with their legitimate business needs. Three recent actions follow, along with ripple effects.