As a hiring manager, you should know that legal compliance is one of the most critical parts of background screening your new hires. A review of the class action suits for FCRA violations brought about in 2015 reveals that most of the suits could easily have been avoided by using the proper forms and processes for hiring. Simple processes like using a standalone disclosure document could save your company a lot of money and grief. Companies like BMW, Whole Foods, Home Depot, and Food Lion, to name a few, learned that the hard way.
BMW fined $1.6 Million
Whole Foods fined $803,000
Home Depot fined $1.8 Million
Food Lion fined $3 Million
In 2014, Publix paid one of the highest fines of $6.8 million for FCRA violations! These numbers alone should be a wake-up call to all companies to review their hiring processes for FCRA compliance.
Don’t assume your background screening company uses FCRA compliant procedures either. In 2015, a major background screening company paid $13 million in restitution and fines to settle their violations of the Fair Credit Reporting Act (FCRA) charged by the Consumer Financial Protection Bureau (CFPB).
CARCO can help with your compliance needs! We’ve been keeping our clients out of harm’s way since 1977 by knowing the law, not taking short cuts, and collaborating with our clients on proper hiring processes and procedures. We even created our own Onboarding Solution which ensures FCRA compliance at each step of the new hire onboarding process.
Contact a CARCO Specialist today to review your hiring process – 866-557-5984 or click here.