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When "John Smith" is the Wrong "John Smith"- Avoid Adverse Action Lawsuits

Why A Thorough Background Check Is Better than a Rush Job.

There are many reasons why employees come and go, and in the rush of a competitive hiring climate, it is important that you get the proper background check, with a company that will follow through with the proper FCRA compliance steps. Sometimes that means an extra step if there is a potential hit on the employee’s results. Is your courthouse search going to protect you from a lawsuit? Sometimes a fast turnaround is a red flag and a common name could produce an inaccurate result.

A Common Problem In Screening of Employees

We want things fast, but you definitely want your screening company to take the time to run an accurate multijurisdictional criminal report(MJD). Sometimes this can add a little time, based upon the response from the individual county courthouse. Some will respond more quickly than others.

So, why does it take longer when there is a potential hit on an MJD?

Due to the index nature of a multijurisdictional criminal search, when something comes in that matches the trace report, it is essential to verify the possible hit with a physically searched report at the county courthouse. This is not always done and can result in adverse action. Your screening professionals at MyHRScreens are knowledgeable in this arena and pause the process to dig deeper.

A Lawsuit Can Easily Happen To You Over Misinformation

Unfortunately, lawsuits are becoming a reflex and it is likely that if you don’t maintain compliance, that you could leave yourself open to a legal nightmare if someone is not hired due to false accusations of criminal activity.

Class action lawsuits that claim violations of the FCRA – sometimes even mere technical violations of the statute – can indeed be costly to employers. In 2018 and 2019 alone, 7-Eleven paid $1.9 million, Delta Air Lines paid $2.3 million, Omnicare paid $1.3 million, a subsidiary of PepsiCo paid $1.2 million, and Frito-Lay Inc. paid $2.4 million to settle class-action lawsuits over alleged violations of the FCRA.

When you are called into court to prove your results or to argue a case, you MUST have the highest standard of due diligence possible, as proof. If you do not, then you face expensive court costs and possible further litigation.

Working with a company such as MyHRScreens that automatically performs this high level of due diligence to protect you is important. You can rest easy that there will be little chance of a mistake with thorough searches.

It is important to understand that an otherwise instant turnaround time, may be slowed briefly to protect both you and your candidate. MyHRScreens feels that compliance is a priority and automatically performs this level of verification for clients. Some courthouses will respond more quickly than others, but this is worth the time and can save you money and turnaround in the long run.

Employers and background check firms will continue to be targeted by class-action lawsuits that claim alleging violations of the federal Fair Credit Reporting Act (FCRA) so don’t rush the process. Make the smart and compliant hire.

Let us help you by connecting you to a comprehensive screening program. For more questions about screening or HR contact MyHRConcierge at 1-855-538-6947 x.108 or email

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