Data Facts Background Screening Blog

Employer Hot Topics Businesses Must Know


Apr 21, 2016 10:09:25 AM

Hot topics background checkLitigation against employers is on the rise, and companies must strive to protect themselves against hiring lawsuits.

Key hot litigation targets can cause big problems to employers who are not aware and prepared. 

The Employment Screening Litigation Tracking Group (ESLTG) recently wrote an informative article on the subject.

Here is an excerpt:

The late, great Yogi Berra once said “this is like déjà vu all over again.” Cases tracked by the Employment Screening Litigation Tracking Group (ESLTG) since October 2015 confirm that the big targets over the last few years remain “red hot.”

Disclosure and Authorization and Adverse Actions Suits Continue to Surge.

A whopping 67% of employer-focused cases have accused employers of violating either disclosure and authorization or adverse action requirements during the background check process. .

Recent news

Big settlements!

Large settlements continue to occur. One national home improvement chain recently settled a case for over $20 million alleging principally that the company has used disclosure and authorization paperwork that contained a release of liability. Over 450,000 people may be involved in the class. Settlement proceeds will be distributed in the form of a $50 gift card or a $35 check.

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Who Cares About Spokeo Anyway?

One federal district court in Illinois recently concluded that a consumer could bring an FCRA case even if the consumer lacked actual damages because the plaintiff still had an interest in protecting his “privacy” and “economic self-determination.” This may be a sign that, even if Spokeo comes out favorably, Plaintiff’s attorneys may assert “work-arounds” to continue the surge of highly technical FCRA cases. 

Employers must remain vigilant and consistent in their hiring and screening processes! Now more than ever before, it's crucial to work with a reputable third party background screening company that will partner with you to stay in compliance and avoid litiation and hiring lawsuits. Data Facts will keep you updated on this and other employer hot topics. 

Topics: background screening company, background check, FCRA, Litigation avoidance, negligent hiring, Employer hot topics

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~~Susan McCullah is the Marketing Project Manager/ Background Screening Division for Data Facts, Inc, a 25 year old Memphis based company. Data Facts Inc -an NAPBS accredited company- is a leading provider of employment screening solutions. Check out our website for a complete explanation of our services.