- Provide the individual with a copy of the report received by the company;
- Identify the agency that provided the report;
- Inform the individual of the right to obtain a free copy of the report from that agency and dispute its accuracy; and
- Notify the individual that the reporting agency is not the one making the adverse employment decision.
Two companies recently learned “the hard way” that if you fail to comply with these FCRA disclosure requirements, you can face not just a lawsuit by the affected individuals, but a civil enforcement action by the Federal Trade Commission (“FTC”). In two consent orders filed on August 11, 2009, the FTC recovered a total of $77,000 in civil penalties from two companies. Additionally, the companies were required to comply with detailed record keeping and reporting requirements and to make regular reports to the FTC so the government can monitor their compliance going forward.
An attorney for over 25 years and admitted to practice in Florida, New York, Tennessee, and Virginia, Diane J. Geller has serviced contingent staffing companies and their vendors for over 20 years. A frequent staffing industry speaker, she provides invaluable information on contract negotiations, employment law, receivables financing, franchise law, litigation, governmental compliance, and general corporate matters. For more information, visit www.gentrylocke.com/geller.
The contents are intended for general information purposes only, and you are urged to consult a lawyer concerning your own situation and any specific legal questions you may have. For further information about the contents, please contact the author at (540) 983-9396. (Copyright 2009, Gentry Locke Rakes & Moore, LLP, and Diane J. Geller, Esq.)