Lawsuits under the Fair Credit Reporting Act resulting from allegedly inaccurate background checks do not appear to be going away. Just last week, plaintiff Michelle Petry filed a class action against IDE Management d/b/a Cathedral Health Care Centers, in the Southern District of Indiana, claiming that she was denied a job as a result of an incorrect criminal background check that was run on her during the application process.
In her complaint, Petry claims that IDE Management denied her a job as a nurse based on allegedly inaccurate results from a background check. Her complaint does not name the company that ran the background check and alleges that the identity of the background screening company remains unknown. According to her complaint, the consumer report obtained on Petry contained convictions for multiple felonies. Petry alleges she had never been convicted of a felony. IDE did not provide Petry with a copy of the consumer report or the required FCRA summary of rights prior to rejecting Petry’s job application.
After learning that she would not be hired by IDE, Petry requested the name of the consumer reporting agency that provided the background check. According to the complaint, IDE refused to disclose the name of the agency.
Petry seeks to represent a class of similarly situated individuals about whom IDE obtained a consumer report and took an adverse action based in whole or in part on that report without first providing a copy of the report and providing a description in writing of the consumer’s rights under the FCRA.
A copy of the complaint is available here.
This case serves as another reminder that employers of all shapes and sizes need to be aware of their obligations under the FCRA if they intend to use background checks as part of their hiring process. Troutman Sanders will continue to monitor developments in this case.