|
FTC Ruling Against Two Employers for
Failing To Give Proper Notices
Two companies
will pay civil penalties totaling $77,000 to resolve
accusations of failing to inform fired workers and
rejected job applicants of their rights under the
Fair Credit Reporting Act (FCRA), according to
proposed consent judgments filed August 11 by the
Federal Trade Commission (FTC) in the U.S. District
Courts for the District of Colorado and Western
District of Washington (United States v. Quality
Terminal Services. LLC D. Colorado, No.
09-cv-07853-CMA-BNB, 8/11/09; United States v. Rail
Terminal Services LLC, W.D. Washington, No
09-CV-1111 MJP, 8/11/09)
In separate
complaints, the FTC alleged that Quality Terminal
Services LLC (QTS) and Rail Terminal Services LLC (RTS)
contracted with a consumer reporting agency to
conduct background checks - including criminal
record reviews - for employees and job applicants,
and that they allegedly made hiring and firing
decisions based on those background checks.
Both companies,
the FTC contended, failed to provide the employees
and applicants with the pre-adverse action notices
and the adverse action notices required by the FCRA.\
The proposed
consent judgments require QTS to pay a civil penalty
of $53,000 and RTS to pay a civil penalty of
$24,000.
QTS and RTS will
be required by the proposal to provide the FCRA-required
notices in the future and to retain records so the
FTC can monitor compliance in the future.
Fair Credit Reporting Act Requirements
Under the FCRA,
before any employer takes adverse action - like
dismissal or denial of employment - based on a
consumer report, the employer is required to:
Provide the employee or applicant with a copy of
the report;
- Identify the CRA that provided the report;
- Notify the affected individual that the CRA
did not make the adverse action decision; and
- Inform the affected individual of his or her
right to obtain a free copy of the report from
the CRA and dispute its accuracy.
The FTC is
starting to crack down more on employers who fail to
follow these guidelines. ESS is here to help ensure
you fully understand the requirements of this law.
To learn more about this process
Click Here
or give our office a call at 1-800-473-7778 and we
will be more than happy to help you.
In addition, ESS
offers a service that when notified we will send all
necessary notices for you on a per case bases.
Again, for more information on this service, contact
our office.
|
|
e-Update
Employment Screening Services, Inc.
e-Update@employscreen.com
1-800-473-7778
|
|
|
|
|
