Court rules inadequate background check disclosure form does not render authorization invalid

Under the Fair Credit Reporting Act, employers must both provide a proper disclosure and obtain the authorization in order to conduct a background check on a prospective employee. A court recently rejected an argument that if an employer’s disclosure is inadequate then the authorization would too be invalid.

The case at hand saw a plaintiff claim he received a background check disclosure form that failed to meet the FCRA's requirement that it be a clear and conspicuous and consist solely of the disclosure that his potential employer would be obtaining a background check for employment purposes. Therefore, since he was not provided a valid disclosure, the plaintiff claims that he did not provide a valid authorization permitting the company to obtain a background check. 

Ultimately, the court found that because the company’s disclosure form contained a liability waiver the plaintiff had adequately stated a claim for a willful violation of the FCRA with specific regards to the disclosure. However, the court ruled the plaintiff failed to state a claim in regards to the authorization form, rejecting the proposition that an inadequate disclosure in a form automatically invalidates the authorization obtained on the same form.

Source: Troutman Sanders LLP, 6/13/2017

Thank you for your interest in Business Information Group. We have received your message and will contact you in one business day or less.
Something went wrong. Try again
You have exceeded the number of attempts to submit this form. As a result, your IP address has been temporarily blocked.
Something went wrong. Try again

Get In Touch

Send a Message *fields required

What are your Interests?optional

Even our RFP PROCESS is state-of-the-art.

Find out why

What Our Clients Are Saying

Everyone I have contacted at Certiphi has been a complete pleasure to work with. The Certiphi customer service rivals every other customer service I come in contact with. Everyone is always so professional, yet super nice! Thanks for all you do and keep up the amazing work and impeccable service that you provide!!!

Human Resources Assistant
Large Medical Staffing Firm

Thank you so much! You have such an incredible reputation within our office; I think we would all say your customer service levels are continually at about 125%!

Human Resources Generalist
Medical and Surgical Hospital

The response time has been very quick. The turnaround times are great. I love your systems and that I can go in and look at the process as its going.

Human Resources Manager
Medical Staffing Agency

It’s such a great customer service that you provide and I’m happy to tell that to anyone.

Pastoral Care Associate
Large Children's Hospital

Working with Certiphi has been such a pleasure. Certiphi has taught me so much, not just about backgrounds but also the meaning of great business.

Human Resources Specialist
Large Medical Staffing Firm

We flew through our NCQA licensure review.  We very much appreciate Certiphi's help in earning a 100% score for the files!

Accreditation Manager
Hospital System Analytics Company

You are about to leave

Ok, Continue Cancel