Employees who turn in an application to an employer may not realize they have significant rights under federal law – even if they are not hired. Employers who decide to use consumer background checks, including criminal history or credit reports, to make a hiring decision must follow a very strict set of rules to do so.
First of all, they must inform you of their intent and get your permission. Your authorization for access to this information must be clear and separate from any other consent forms. In the event that an employer is not going to hire you because of what is turned up in reports, you must be given notice and time to rectify any mistakes.
These are only a few of the requirements set forth by the Fair Credit Reporting Act (FCRA), and an increasing number of employers are being held liable for violations. According to recent reports, Paramount Pictures is the most recent big offender in a string of class action lawsuits related to FCRA violations in the hiring process. The motion picture production company has been accused of failing to inform candidates of its intent to delve into their consumer, credit, and criminal histories. The class action alleges that there were very strict policies and practices that were not followed by the company.