While every employer engages in some due diligence when considering a new hire, if your company routinely, or even occasionally, obtains a “consumer report” as a way to vet candidates, it behooves you to understand the rules set out in the Fair Credit Reporting Act as to how you can and can’t do this. Indeed, as the defendant in Kenn v. Eascare, LLC recently learned, even a small and seemingly innocuous failure to follow the FRCA can lead to extremely harsh results.

According to the Complaint in Kenn, Eascare routinely conducted background checks when hiring, and in January 2018, Nicole Kenn applied for a position with the company. As part of that process, Eascare provided her with a disclosure and authorization form entitled “Consumer Report/Investigative Consumer Report Disclosure and Release of Information Authorization.” The front side of the form asked Kenn to acknowledge her understanding that Eascare would conduct a background check on her for employment purposes, and it noted that this might include obtaining a “consumer report” or an “investigative consumer report” as defined under FCRA. The back side of the form sought Kenn’s authorization for an entity named PT Research to provide such reports and granted … Keep reading