• Text Size
• Print
• Email

  From:
  

  To:
  

  Hey! Check out this news page: https://www.thebackgroundinvestigator.com/Articles/Righting-the-Wrong,-Still-Getting-Sued/3149/index.php.

  SendCancel

Top Stories

Righting the Wrong, Still Getting Sued.

December 17, 2025 posted by Steve Brownstein

"We fixed the error" isn’t the legal shield you think it is. ????️????

I often hear from HR leaders and business owners who think that as long as a background check error is eventually corrected, the company is safe from litigation.

The reality? In the eyes of the FCRA, the damage is often done the second that inaccurate report is published.

Here is why "fixing it later" won't stop a lawsuit:

???? Liability is Procedural, Not Just Substantive The Fair Credit Reporting Act (FCRA) doesn’t just care about the truth; it cares about the process. If you didn't provide a standalone disclosure form or skipped the "Pre-Adverse Action" notice before moving on to another candidate, you’ve already committed a violation.

⏱️ The "Lost Opportunity" Cost If a candidate loses a job offer because an employer moved to their #2 choice while the #1 choice was busy disputing a false record, that's a tangible financial loss. A correction 30 days later doesn't pay the candidate's bills or restore that specific role.

???? Willful vs. Negligent Procedures Courts are increasingly looking at why the error happened. If your screening provider relies on "name-only" matches (common in jurisdictions with limited data access like Puerto Rico) without verifying Social Security numbers or dates of birth, a court may find "willful" disregard for accuracy.

⚖️ The "Pre-Adverse Action" Trap Many employers make the mistake of telling a candidate "we're rescinding the offer because of your background check" before sending the formal notice and a copy of the report. Even if the candidate proves the report is wrong the next day, the employer has already violated the mandatory waiting period.

The Takeaway: Don't wait for an error to occur to check your compliance.

1. Audit your Disclosure and Authorization forms (ensure they are standalone documents).

2. Tighten your Adverse Action timelines (wait at least 5 business days).

3. Vet your screening partners on their "maximum possible accuracy" protocols.

In background screening, an ounce of prevention is worth a million dollars in settlement fees. ????????️

#HRCompliance #BackgroundChecks #FCRA #RiskManagement #HiringBestPractices #TalentAcquisition