When you apply for a job, employers often run background checks that cover your criminal history, employment records, and education. If the background screening company provides incorrect information—such as reporting a criminal record that belongs to someone else or listing a minor offense that should have been expunged—you could lose the job or promotion.
The Impact of Background Screening Errors
An inaccurate background check can derail a career in an instant. Job applicants are frequently rejected for positions without ever knowing that the rejection was based on false information. In many cases, screening companies report expunged records, misclassify misdemeanors as felonies, or mix the records of two different people, leaving the applicant to face unfair suspicion.
Rules Governing Background Screening Companies
Background check companies are regulated under the FCRA. They must follow strict guidelines to ensure the information they report is up-to-date and accurate. For example, they are generally prohibited from reporting adverse information (other than criminal convictions) that is more than seven years old. They must also have procedures in place to verify that court records actually belong to the applicant being screened.
Strict Disclosure Requirements for U.S. Employers
The FCRA also places strict duties on employers. Before an employer can run a background check, they must obtain your written consent. More importantly, if they plan to reject you based on the background report, they must follow a two-step process. First, they must provide you with a pre-adverse action notice, a copy of the report, and a summary of your rights. This is designed to give you a chance to dispute errors before the job is lost.
Legal Remedies for Harmed Job Applicants
If a background screening company reports false information and it causes you to lose a job, promotion, or professional license, you can hold them accountable. Under the FCRA, you can recover lost wages, compensation for emotional distress, and attorney's fees. If the violation was willful, you may also be entitled to punitive damages.
Horowitz Law PLLC represents job applicants who have been harmed by inaccurate background reports. Contact us to learn how we can defend your professional reputation.