Employer Agrees to $1.8M Disclosure Form Settlement

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An employer recently agreed to a nearly $1.8 million settlement over allegations its disclosure form violated the Fair Credit Reporting Act (FCRA).

Specifically, the complaint pointed to the following language as being problematic:

You have the right to make a request to [employer], upon proper identification, to request the nature and substance of all consumer report information in its file on you at the time of your request, including the sources of information; and the receipts of any consumer reports on you which [employer] has previously furnished within the two-year preceding your request.

The complaint cited another case, Walker v. Fred Myer, in support of its assertion that the inclusion of this language violated the “solely” requirement and should have been included in a separate document. It is important to note the employer did not admit any wrongdoing or liability as part of this settlement.

Employers are encouraged to review their disclosure and authorization forms with qualified legal counsel on a routine basis.