EEOC and FCRA Lawsuits can be Expensive – Using a Background Screening Company can Help

The use of public records such as criminal background records in the hiring process or rental process are regulated by certain entities and specific rules apply to when and how they can be used.  Additionally, employment screening utilizing employment background checks like criminal background checks are not just regulated by a number of agencies including the Equal Employment Opportunity Commission (EEOC) and Fair Credit Reporting Act (FCRA) but are also enforced meaning these agencies can sue companies that violate applicable law.

These kinds of lawsuits can be very expensive for any company and may be avoidable by partnering with a professional well-qualified background screening agency, one that understands that the actual screening process can be very complicated and requires a number of steps that are regulated by law.  Having a legally compliant hiring process can help thwart lawsuits and protect a company from financial risk.

Every year in the USA lawsuits involving action by the EEOC and based upon the FCRA come to trial.  Regardless of the result of a court trial, litigation is a costly expenditure for a company.  This cost could be even greater if the company loses the lawsuit.

The cost of litigation is expensive and, in some cases, may be avoidable.  It still remains a best practice for employers to work with a well-qualified third-party background screening agency to remain fully compliant with existing laws governing employment screening and the overall hiring process.  Decisions related to hiring, promoting or reassigning should be backed by compliant employment background checks that abide by current laws including, Federal, State and Local laws as well as remaining compliant with regulations enforced by the EEOC and FCRA.

To read more about this subject read recent press release found here: EEOC and FCRA Lawsuits Can Be Costly & Might Be Avoidable

Leave a Reply