Recently, two former Domino’s Pizza employees filed a lawsuit against the company, claiming that Domino’s violated the Fair Credit Reporting Act by (1) running background checks on employees without proper authorization; and (2) “systematically” failing to provide employees with copies of their background checks prior to taking adverse employment action against them.  The United States District Court denied the motion by Domino’s to dismiss the case, “ruling that the plaintiffs properly alleged that Domino’s violated the Fair Credit Reporting Act.” The two plaintiffs allege that that they were fired from Domino’s because of undisclosed information within their background checks that was never shared with them by the company. Furthermore, one of the plaintiffs, Justin D’Heilly from St. Paul, Minnesota, contacted the St. Paul Police Department to see what information might have led to his termination, and found his record clean apart from two speeding tickets.

The Law firm currently representing the plaintiffs, Nichols Caster, is also currently involved in a similar case against bank Capitol One. This specific case alleges that the bank’s authorization system is inconsistent and that Capitol One fails to provide copies of background checks when using them to take adverse action against an employee or potential employee.


How You Can Avoid FCRA Violations

Anytime that a company is using background checks to make an employment decision, whether it be hiring, retention, promotion, or firing, it is vital that an employer comply with FCRA policy. The FCRA is enforced by the Federal Trade Association, and applies to any company who uses third party consumer reporting agencies to perform their employment background checks. There are very specific guidelines provided by the FCRA outlining proper procedure before a background check is given, as well as before and after any adverse action is taken.

Find out more about the recently amended Fair Credit Reporting Act and its new requirements here.

We highly encourage all companies to review their background check and screening policies to ensure that they are compliant with the new FCRA regulations. Advanced Background Check provides a step-by-step guide to complying with the new regulations here.