Archives for June 2014

A federal consumer protection statute, the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. §§1681, et seq., protects employees against employer misuse of an employee’s credit report.  Do not be fooled by FCRA’s title – the statute reaches far beyond the realm of credit reporting and governs, among other things, how credit reports are used in the employment context.

How do you know if there has been a misuse of your credit report?  To answer this, ask yourself the following questions:

First, has your employer or potential employer sought to obtain and use your credit report, which broadly includes any information from a consumer reporting agency bearing on your credit, character, reputation, personal characteristics, or mode of living, for any “employment purpose”?  The term “employment purpose”, when used in connection with a credit report, means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee.  15 U.S.C. §1681a(h).

If the answer to the first question is yes, then ask yourself whether your employer disclosed its intention to obtain your credit report and obtained your authorization to do so prior to obtaining the report.  The FCRA provides that ordinarily an employer may not request or obtain a credit report until “the consumer has authorized in writing … the procurement of the report.”  15 U.S.C. §1681b(b)2)(A)(ii).  As to disclosure, the FCRA generally requires that, prior to procuring a credit report, the employer make a clear and conspicuous disclosure that a credit report may be obtained for employment purposes, and that the disclosure is set forth “in a document that consists solely of the disclosure.”  15 U.S.C. §1681b(b)(2)(A)(i). If your employer or potential employer failed to follow these requirements, you may be entitled to recover any actual damages, a statutory damage award of up to $1,000, punitive damages, and recovery of attorneys’ fees and costs.  15 U.S.C. §1681n (civil liability for willful noncompliance); 15 U.S.C. §1681o (civil liability for negligent noncompliance).

Moreover, an employer cannot take an “adverse action” (e.g., decline employment, terminate employment, etc.) based on a credit report without first providing the above disclosures to the prospective or current employee.  If the employer fails to provide this information or fails to give you a reasonable amount of time to review the disclosures, it could be in violation of the FCRA, again, entitling you to damages.

If you feel there has been a willful or negligent misuse of your credit report by an employer or prospective employer or if you have any questions or concerns about the same, contact the attorneys at Haeggquist & Eck, LLP.

To schedule your free initial consultation, contact us online or call (619) 342-8000 today!

Effective January 1, 2013, California law provides that current and former employees (or a representative) have the right to inspect and receive a copy of the personnel files and records that relate to the employee’s performance or to any grievance concerning the employee. Labor Code Section 1198.5.

Inspections must be allowed at reasonable times and intervals, but not later than 30 calendar days from the date the employer receives a written request. Upon a written request from a current or former employee or a representative, the employer shall provide a copy of the personnel records, at a charge not to exceed the actual cost of reproduction, not less than 30 calendar days from the date the employer receives the request.

To schedule your free initial consultation, contact us online or call (619) 342-8000 today!