Is running a credit check part of your hiring procedures? Are you doing these credit checks legally? Lots of big named companies are getting sued for violations of the Fair Credit Reporting Act (FCRA), including a new lawsuit at craft giant Michaels.
What’s the problem? Well, the law stipulates that you have to give candidates specific notice that you are going to run a credit check on them, and give them proper notice before taking any adverse action (usually, not hiring) them. The notice has to be clear and obvious–it can’t be buried on page 3 of some terms and conditions that you have to click through before filling out the online application.
The reality is that employment law is extremely complex, which is why you need anemployment lawyer on your speed dial. But the strange thing is, these companies aren’t little Mom and Pop operations where the owners hire their neighbor to do the legal work for setting up their business, buying their house, and reviewing their hiring forms. These are major corporations, with employees in the tens of thousands of employees. (In fact, Dollar General who is also being sued, has over 100,000 employees.)
To keep reading, click here: If You Run Credit Checks on Your Job Candidates, Now Would Be A Good Time To Panic