Employment Background Screening

Plaintiff Brings Claim Against Employer

A Plaintiff by the name Gennaro Mattiaccio II was terminated by Defendant DHA Group for alleged misconduct. On July 21st, 2020, The United States District Court, District of Columbia issued an opinion in Matticcio v. DHA Group., Inc. that said the Plaintiff had standing to pursue claims of Fair Credit Reporting Act (FCRA) violations against his former employee. The DHA Group used a background check that was used to justify Plaintiff Maticcio’s termination from work.

Mattiaccio II claims that these background checks were retaliation for a complaint he had filed against DHA Group. Typically, pre- and post- employment background checks that investigate employee misconduct are exempt from the FCRA.

Mattiaccio II brought two FCRA claims: Defendant lacked proper authorization to perform the background checks, since they were not clearly formatted and Plaintiff did not authorize a post-employment background check and was given neither a summary of rights or an opportunity to review his report before his termination. 

District Judge Colleen Kollar-Kotelly wrote an opinion that has been cause of the latest decision in almost a decade-long dispute between the two parties. Judge Koller-Kotelly granted in part and denied in part the Defendant’s Motion for Summary Judgement for lack of standing under Article III of the U.S. Constitution.
She states that the Plaintiff has a standing on claims that he did not authorize the post-employment background check but he cannot bring in the claim that he did not authorize the pre-employment background check. She states that he also has a claim that he was not provided a copy of the report or his summary of rights before the adverse action was taken against him. The case has now been taken to court. 

The FCRA promotes the accuracy, fairness, and privacy of consumer information contained in the files of Consumer Reporting Agencies (CRA’s), protects consumers from the willful and/or negligent inclusion of inaccurate information in their consumer reports, including consumer credit information. 

Employment Screening Resources (ESR) wants to remind us that allegations made in a lawsuit are not proof that a business or individual violated any law, rule, or regulation. The allegations written in this blog are not factual at this current time. 

If you feel that your employer has put a violation wrongfully against you, contact us to take a look at your case and we will provide you with information and let you know if you have a claim. 

Background Checks | Employment Screening

Background Checks and the Federal Law

Employers obtain background checks (or consumer reports, commonly known as credit reports) to aid decision making when it comes to evaluating a consumer for employment, promotion, reassignment, or retention as an employee. Intelli Corp, HireSafe, HireRIght, Clarifacts, EmployeeScreenIQ, and Proforma are just a few of the many background check/employee screening companies that offer employers their services. When an employer conducts a background check, they may be provided with any of the following information about you:

  • Credit reports;
  • Criminal and civil records;
  • Social security number (trace and validation);
  • Employment verification;
  • Education verification;
  • Professional license verification;
  • Motor vehicle and driving records;
  • Military record verification; and
  • Workers’ compensation history.

Employer Agrees to $3M Employment Background Screening Class Action Settlement

K-Mart, in Pitt v. K-Mart Corp., Case No. 11-cv-00697, has reached a $3 million settlement in a class action lawsuit pending before the U.S. District Court for the Eastern District of Virginia. The class consisted of more than 64,000 job applicants who sued K-Mart for violations of the Fair Credit Reporting Act (the “FCRA”).  Specifically, Plaintiffs alleged they lost out on jobs without having a chance to challenge negative information reported to their prospective employers in background checks and that K-Mart failed to notify the job applicants they were rejected for employment because of the background checks.

Credit Reports and Employment Background Screening

One of the Federal Trade Commission’s (“FTC”) roles is to protect job applicants and employees against inaccurate information being reported to employers; because employers can access your credit report to make decisions regarding hiring, firing, promotion, reassignment, or retention. In addition to financial history, the consumer reports provided to employers consist of arrests, convictions, judgments, and bankruptcies. Recently, settlements have been reached in legal actions that have been brought against companies like Spoekeo, Inc. and HireRight Solutions, Inc. for failure to take reasonable measures to ensure the accuracy of consumer reports. Such failures resulted in inaccurate criminal history, belonging to someone other than the actual consumer being reported as if it was relating to the individual the report was requested for. Other failures included noncompliance with the FCRA rules and not ensuring the reports were used for only purposes provided by the law.