Blogs

INDUSTRY NEWS

"Standalone Disclosure" is Focus in California Court FCRA Case

Northern District of California concludes that employer failed to meet the Fair Credit Reporting Act (FCRA) guidelines pertaining to the standalone disclosure requirement.

In Arnold, et al. v. DMG Mori USA, Inc., former employees of DMG Mori USA, Inc. ("DMG"), filed a class action claiming that as part of the background screening process, DMG presented individuals with disclosure forms that violated the FCRA. The plaintiff argued that the disclosure for employment screening purposes was not "in a document that consists solely of the disclosure" (otherwise referred to as the standalone disclosure requirement).

Ultimately, the court determined that DMG's disclosure form did not meet the FCRA requirements because it included a description of consumer rights under California, Maine, Minnesota, New York, Oklahoma, Oregon and Washington state consumer reporting laws. Even upon revising the document (which omitted state law references), the form still remained out of compliance with the standalone disclosure requirement because it included information about: (1) the right to request whether a consumer report had been conducted on the subject and (2) the right to request a copy of the report.

The court granted summary judgment for the plaintiffs and found that DMG's violations were "willful." Parties were referred to schedule a settlement conference by the court, the outcome of which will include damages ranging from $100 to $1,000 per class member. A precise number of class members was not available, but it is estimated to be between 668 and 1,138 members.

The outcome of this case serves as a reminder that employers, as users of background check reports, are responsible to provide a legally sufficient disclosure and authorization form under the FCRA. Additionally, employers are encouraged to ensure legal counsel reviews FCRA disclosure and authorization documents and language.

Posted: June 7, 2021


All Rights Reserved © 2021 Business Information Group, Inc.
This document and/or presentation is provided as a service to our customers. Its contents are designed solely for informational purposes, and should not be inferred or understood as legal advice or binding case law, nor shared with any third parties. Persons in need of legal assistance should seek the advice of competent legal counsel. Although care has been taken in preparation of these materials, we cannot guarantee the accuracy, currency or completeness of the information contained within it. Anyone using this information does so at his or her own risk.

Sending...
Thank you for your interest in Business Information Group. We have received your message and will contact you in one business day or less.
You have exceeded the number of attempts to submit this form. As a result, your IP address has been temporarily blocked.

Get In Touch

Send a Message *fields required

What are your Interests?optional

Contact Information

Even our RFP PROCESS is state-of-the-art.

Take a look
RFP Kit

What our clients are saying

We cannot express enough how much we have enjoyed working with BIG! It has really benefitted our processing and ease of doing business!

Licensing and Registration Manager
Investment and Insurance Company

I enjoy collaborating with BIG, and know that if I have to reach out with a question/concern, a positive attitude with a willingness to find resolve is on the other side of an email or a phone call.

Human Resources Administrator
Global Financial Services Firm

You have been the most professional and most helpful business partner that I have ever been associated with — always there to assist us and with rapid turnaround times.

Principal Consultant
Major Professional Services Network

I am confident whenever we add a product with your company that I will have a good experience.

Division Manager
Insurance and Financial Services Agency

We have received superior service and we know this is what you and your team strive for. We are grateful for the dedication, level of professionalism and effort shown.

Agent
Large Insurance Agency
Sending...
Thank you for your interest in Business Information Group. We have received your message and will contact you within one business day.
Our apologies, there was an error processing your request.  Please resubmit your message or contact us at 800-369-2612.
You have exceeded the number of attempts to submit this form. As a result, your IP address has been temporarily blocked.
Our apologies, there was an error processing your request.  Please resubmit your message or contact us at 800-369-2612.

Get In Touch

Send a Message *fields required

What are your Interests?optional

You are leaving BIGReport.com

Ok, Continue Cancel

×
×