Background ChecksTop 3 Class Actions Against Background Check Companies under FCRA

September 12, 2023

In the realm of employment, background checks play a crucial role in decision-making processes. However, the Fair Credit Reporting Act (FCRA) imposes strict guidelines to protect job applicants from inaccuracies and ensure fair treatment. Despite these regulations, several significant class action lawsuits have arisen, targeting prominent employment background check companies. Let’s delve into the three largest class actions against these entities, shedding light on the defendants and their implications for job seekers’ rights.

  1. HireRight Solutions, Inc.: HireRight Solutions, a major player in the employment background check industry, faced a class action lawsuit alleging FCRA violations. Plaintiffs claimed that HireRight provided inaccurate or outdated information in background reports, leading to adverse employment decisions. This case highlighted the importance of accurate and up-to-date background checks in the hiring process and the consequences for companies that fail to comply with FCRA requirements.
  2. Sterling Talent Solutions: Another significant class action targeted Sterling Talent Solutions, a leading provider of employment background screening services. Plaintiffs accused Sterling of failing to obtain proper authorization from job applicants before conducting background checks and neglecting to provide them with copies of their consumer reports as required by the FCRA. This case underscored the importance of transparency and consent in the background check process and the repercussions for companies that disregard these principles.
  3. First Advantage Background Services Corp.: First Advantage Background Services, a prominent background screening company, found itself embroiled in a class action lawsuit alleging FCRA violations. Plaintiffs contended that First Advantage failed to ensure the accuracy of consumer reports and neglected to provide individuals with notice of adverse actions taken based on those reports. This case served as a reminder of the importance of thoroughness and accountability in the background check industry and the ramifications for companies that fall short of FCRA compliance.

These three class actions represent pivotal moments in the ongoing struggle to protect job applicants’ rights in the face of background check company negligence. By holding industry giants like HireRight, Sterling Talent Solutions, and First Advantage accountable for FCRA violations, plaintiffs have not only sought justice for themselves but also advocated for greater transparency and fairness in the employment screening process.

In conclusion, the largest class actions against employment background check companies underscore the importance of strict adherence to FCRA guidelines in the hiring process. These cases serve as reminders of the critical need for accuracy, transparency, and accountability in employment background checks and highlight the consequences for companies that fail to uphold these principles. As job seekers continue to navigate the employment landscape, it is essential that both employers and background check companies prioritize compliance with the FCRA to protect the rights and interests of all parties involved.

In employment, background checks are crucial but regulated by the FCRA. Explore the top class actions. Fill out our form today!


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