Protecting Your Company from the growing number of class action lawsuits surrounding background checks
While the headline can be scary, luckily, the solutions are not. We have seen exponential growth in lawsuits aimed at companies and providers based on perceived problems with their use of background checks. In most cases, these involve some very technical flaw in the way a company provided required notifications before, during and after the background checks.
In a recent case against Disney, a federal judge allowed a class action suit to proceed regarding how Disney handled the required adverse action letters. In his opinion, the judge specifically noted that there was an option for Disney at a fairly small cost, to utilize the services provided by its background vendor to fulfill all of their adverse action requirements. Therefore, there was really no reason for them not to follow everything to the letter of the law.
True Hire is here to make sure your company stays compliant. There are very specific guidelines about what must be included on the various forms and what cannot be included as well. The timeframes for sending the forms and manner of sending the forms are other issues being addressed currently.
We have several programs to help automate or totally manage your adverse action requirements. Call us today to make sure you are following all of the steps to stay in compliance!
If you deny an applicant a job based on a report, it is legally required to notify the applicant of the decision. The Adverse Action process is a two-part process. First is a pre-adverse action where you give the applicant the opportunity to dispute any information on a background report before taking an adverse action.
Once you have notified the applicant that you will be denying employment based on background report information, and have provided them a copy of that report, a second notification is required. It is optional to provide the report, summary, or dispute form in the second communication.
Application Dispute Notice
Once you have notified the applicant that you will be denying employment based on the information in the background report, your applicant may dispute the information in the copy of the report you’re provided. Your applicant may either fax or mail the below form to True Hire, or go directly to
for a direct connection to our dispute management processes.
To read more about the Disney case, go here