With a large number of hiring-related lawsuits in play for Fair Credit Reporting Act (FCRA) and Equal Employment Opportunity Commission (EEOC) violations, employers are wondering who the next big target is going to be. Recently, Wells Fargo Bank reached a settlement without admitting guilt for a maximum amount of $12 million. In the class action suit, brought by Terrell Manuel and Charles White, the plaintiffs alleged that Wells Fargo failed to meet pre-adverse action notification requirements prior to taking adverse employment action against them.
In a similar incident, Saline Retail has been sued over alleged FCRA violations for also failing to meet pre-adverse action notification requirements prior to taking adverse employment action based on a consumer report from ADP. The amount of the Wells Fargo settlement, and the increasing number of actions being filed, should remind employers of all sizes that violating consumer rights under the FCRA, can lead to deeply punitive action. Those who do not have the expertise to handle information about candidates in a compliant fashion should work with specialists who do.