FCRA Disclosure Requirements

Two federal court decisions out of California should serve as reminders to employers that the requirements of the Fair Credit Reporting Act will be strictly interpreted and applied. In a class action against Walmart, and also in a Ninth Circuit Court of Appeals decision, FCRA disclosure requirements were at issue; the Ninth Circuit’s holding reaffirms the FCRA’s requirement that disclosures be in a standalone document, without including additional state-mandated disclosures. The Walmart case allowed claims that its disclosures were similarly faulty to move forward as a class action. To avoid potential liability, employers would do well to closely adhere to the disclosure requirements, as required by the explicit language of the Act; guidance on the issue can be found at the FTC’s website: https://lnkd.in/gtVY2Jq

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