FCRA VIOLATIONS AT WORK — When Employers and Background Check Companies Cross the Line
Employers routinely use background checks to screen job applicants or evaluate current employees
But under the Fair Credit Reporting Act (FCRA), that process comes with strict rules—and when those rules are broken, your rights are on the line.
At R23 Law, our California Consumer Protection Attorneys hold both employers and consumer reporting agencies (CRAs) accountable when they misuse background checks. If you’ve been denied a job or promotion because of a background check—or if you weren’t even informed about it—you may have a claim.
Understanding the FCRA: What Employers and CRAs Must Do
The FCRA doesn’t just apply to credit bureaus. It covers any entity that collects or uses personal background data for employment decisions. That includes companies conducting:
Criminal background checks
Employment history reports
Driving record reviews
Drug test reporting
Under the FCRA, both employers and background check companies can be held legally liable for failing to follow proper procedures .
Red Flags: Signs Your Rights Were Violated
Employers are legally required to follow several steps before, during, and after conducting a background check. If they skipped any of the following, you may have grounds for a lawsuit:
They Didn’t Tell You They Were Running a Background Check
Employers must give you a clear, standalone notice that a background check will be performed. It can't be buried in fine print, hidden in your application, or mixed into other disclosures .
They Didn’t Get Your Written Permission
Before pulling your records, the employer must get your signed authorization. Consent must be specific and separate—it cannot be combined with liability waivers or unrelated agreements .
They Didn’t Share the Results With You
If something negative shows up, they must give you a copy of the report and time to respond before taking action. You have the right to dispute errors or clarify misleading information.
They Didn’t Inform You of Your Rights
You're entitled to receive a “Summary of Rights Under the FCRA”. If they skipped this, they’re in violation.
They Took Action Without Telling You Why
If you're rejected or fired due to a background check, the employer must give you an adverse action notice—telling you what happened and how to challenge it .
Why This Matters: FCRA Violations Are On the Rise
Many employers—especially large corporations—routinely violate FCRA rules. In recent years, courts have seen a surge in class action lawsuits over technical FCRA violations. These aren't minor issues—they affect your ability to get hired, promoted, or keep your job.
At R23 Law, we’ve seen how these oversights can derail someone’s career. That’s why we fight aggressively to hold companies and CRAs accountable.
You Have Rights. R23 Law Protects Them.
If your employer or a background check company violated your rights under the FCRA, you may be entitled to:
Actual damages for lost job opportunities or emotional distress
Statutory damages of up to $1,000 per violation
Punitive damages if the violation was willful
Attorney’s fees—you don’t pay unless we recover for you
Our R23 Law California Background Check Violation Lawyers can evaluate your situation and determine whether a lawsuit is the right step. Even if your case doesn’t require legal action, we’ll point you in the right direction—at no cost to you.
Don’t Let an Employer or CRA Get Away With It
If your background report cost you a job—or if you were never told one was being used—it’s time to take a stand.
Contact R23 Law today for a free consultation with one of our R23 Law California FCRA Attorneys. We’re here to protect your rights and pursue justice when companies fail to follow the law.
