Fair Credit Reporting Act Amendment Offers Important Protections From Lawsuits Targeting Background Check Programs

Criminal background checks obtained for employment purposes are under attack from various sources – the plaintiffs’ bar via class and individual lawsuits lodged against employers and consumer reporting agencies, the U.S. Equal Employment Opportunity Commission, regulatory agencies, and the legislatures of states and municipalities. On the other hand, even the U.S. Supreme Court has reaffirmed the potential value that background checks have for employers, noting that, “[r]easonable investigations of applicants and employees aid the Government in ensuring the security of its facilities and in employing a competent, reliable workforce.” Likewise, governments continue to pass laws requiring specified employers, such as those in the healthcare, financial, security, and child care industries, to conduct criminal background checks, with the explicit or implicit rationale of protecting the public from risks associated with employing certain ex-offenders.