Did a Background Check Cost You a Job? Here’s What Employers Are Required to Do Under the FCRA

Losing a job opportunity because of a background check is devastating — especially when the information in that report is wrong, outdated, or belongs to someone else entirely. But even when background check information is accurate, employers are required to follow specific legal steps before taking action against you. Many employers skip these steps entirely, and when they do, they may be violating the Fair Credit Reporting Act (FCRA).

At Weiner & Sand LLC, we represent individuals across the country who have had their rights violated by background reporting companies and the employers who use them. Here’s what you need to know.

What Is the FCRA?

The Fair Credit Reporting Act is a federal law that governs how consumer reporting agencies — including background check companies — collect, use, and share information about individuals. It also places legal obligations on employers who use background reports to make hiring decisions. The law exists to protect you from being harmed by inaccurate or improperly used information.

What Employers Must Do Before Rejecting You Based on a Background Check

Under the FCRA, before an employer takes an “adverse action” — such as rescinding a job offer, declining to hire you, or terminating your employment — based on information in a background report, they are required to take specific steps.

Step 1: Provide You With a Pre-Adverse Action Notice

The employer must give you a copy of the background report they obtained, along with a document called “A Summary of Your Rights Under the Fair Credit Reporting Act.” This notice must come before the employer makes a final decision. The purpose is to give you a chance to review the report and dispute any errors.

Step 2: Give You Time to Respond

You must be given a reasonable opportunity to dispute the accuracy or completeness of any information in the report before the employer finalizes its decision. Courts have generally found that a waiting period of at least five business days is reasonable, though this can depend on the circumstances.

Step 3: Provide a Final Adverse Action Notice

If the employer proceeds with the adverse action, they must then send you a final notice that includes the name of the background check company, a statement that the company did not make the hiring decision, and information about your right to dispute the report.

Why Employers Skip These Steps — and Why It Matters

Many employers — including large national companies — simply don’t follow these procedures. They receive a background report, see something they don’t like, and either rescind an offer or never extend one, without ever notifying the applicant. When this happens, the applicant has no idea there was a problem, no chance to correct errors, and no opportunity to explain the circumstances. This is a direct violation of the FCRA.

The consequences for you can be severe: a lost job, damaged career prospects, and financial hardship. The good news is that the law provides meaningful remedies. Violations of the FCRA’s adverse action notice requirements can entitle you to:

• Actual damages
• Statutory damages between $100 and $1,000 per violation
• Punitive damages
• Attorneys’ fees and costs

This means you may be able to bring a claim at no out-of-pocket cost to you.

Common Background Check Problems We See

Beyond procedural violations, background reports themselves are frequently riddled with errors. Some of the most common problems include:

• Criminal records that belong to someone with a similar name being attributed to you
• Expunged or sealed convictions that should no longer appear
• Outdated information that is too old to be legally reported
• Information from a twin or family member mixed into your report
• Records reported under an incorrect date or jurisdiction, making them appear more recent or serious than they are

If any of these situations sound familiar, you may have a claim — not only against the employer for failing to follow the proper process, but also against the background check company for reporting inaccurate information.

What Should You Do If You Think Your Rights Were Violated?

First, get a copy of your background report. The employer is required to give it to you as part of the pre-adverse action notice. If they didn’t, that is itself a potential violation. If you did receive it, review every item carefully.

Second, contact an FCRA attorney as soon as possible. There are statutes of limitations on FCRA claims — generally two years from the date of the violation — so time matters. An experienced attorney can review your situation, identify violations, and advise you on your options.

Weiner & Sand LLC has been representing individuals in FCRA cases for decades. We are one of a small number of firms in the country that focuses on these cases, and other law firms regularly refer their most complex FCRA matters to us. We handle most cases on a contingency fee basis, meaning you pay no attorneys’ fees unless and until we recover for you.

Contact Weiner & Sand LLC Today

If a background check may have cost you a job — or if you received a background report with errors — call us at (404) 254-0842 or fill out our online contact form to request a free consultation. We represent clients in Georgia and across the country, and we’re ready to fight for you.