GROUNDS FOR CHECKS – Penalties Available for Background Check Violations in California
When you’re applying for a job or seeking housing, background checks are often a crucial part of the process. Whether it’s an employer or a landlord, these parties frequently rely on third-party background screening companies to determine your eligibility. But what happens when these checks contain errors, and your rights are violated?
In California, both state and federal laws provide significant protections, and you may be entitled to compensation if these laws are violated.
Common Issues Consumers Face with Background Check Companies
Background checks are not just limited to employment—they’re also used for housing, loans, and even volunteer positions. Unfortunately, many people encounter similar issues when these checks go wrong. Here are some of the most common problems:
Inaccurate Criminal Records: Sometimes background checks show criminal records that don’t belong to you, are outdated, or were expunged.
Misreported Credit Information: Credit information is often included in background checks, and errors can unfairly prevent you from securing housing or loans.
Delays in Processing: Slow processing can cost you a job or housing opportunity when employers or landlords need immediate results.
Failure to Notify of Negative Information: Many background check companies fail to inform consumers about negative information, leaving them unaware of what’s being used against them.
Duplicate Entries: In some cases, negative information is listed multiple times, magnifying its impact and resulting in unfair rejections.
These issues are more than just inconveniences—they can affect your livelihood, housing, and even financial security. That’s why federal and state laws are in place to protect consumers from such errors.
ICRAA and FCRA – Key Legal Protections
Two primary laws protect your rights when it comes to background checks: California’s Investigative Consumer Reporting Agencies Act (ICRAA) and the federal Fair Credit Reporting Act (FCRA).
Both of these laws are designed to ensure that background check companies follow proper procedures, and they give consumers powerful tools to dispute errors and take legal action when their rights are violated.
The Fair Credit Reporting Act (FCRA)
The FCRA is a federal law that applies to background checks performed across the U.S. Under the FCRA, employers, landlords, and background screening companies must:
Provide written notice that a background check will be conducted.
Obtain your written consent before conducting the check.
Disclose negative information found in the report and provide a copy of the report to you.
Notify you of any adverse action (such as denying a job or housing) based on the background check.
The Investigative Consumer Reporting Agencies Act (ICRAA)
California’s ICRAA expands on the protections offered by the FCRA. It applies not just to employment background checks but also to housing and insurance. ICRAA requires background check companies to take extra steps, such as:
Providing more detailed reports on how the information was gathered.
Allowing consumers to request corrections or updates to the information if it is found to be inaccurate.
Statutory Penalties and Financial Compensation for Violations of the FCRA and ICRAA
If a background check company or an employer violates your rights under the FCRA or ICRAA, you can file a lawsuit to recover damages. Here’s what you can expect in terms of penalties and financial compensation:
FCRA Violations: Under the FCRA, consumers can recover either actual damages (which could be lost wages, missed job opportunities, or emotional distress) or statutory damages of $100 to $1,000 per violation. If you can prove the violations were willful, you may also recover punitive damages, which can substantially increase the total compensation. Additionally, the FCRA allows you to recover attorney fees and court costs.
ICRAA Violations: In California, ICRAA allows consumers to recover actual damages or $10,000—whichever is greater—per violation. Similar to the FCRA, you can also recover attorney fees and court costs. This law provides extra protection for California consumers and holds background check companies to a higher standard.
These penalties serve as strong deterrents, ensuring that background check companies follow the law and treat consumers fairly. If your background check was mishandled, you have powerful legal recourse at both the federal and state levels.
Notable Background Check Companies
Many employers and landlords rely on third-party companies to conduct background checks, but bigger isn’t always better. These companies have all faced complaints about their practices, often leading to severe consequences for consumers.
HireRight
Based in Irvine, California, HireRight provides screening services to industries like healthcare, transportation, and financial services. However, they have faced numerous complaints about inaccurate reports and delays. Several lawsuits have been filed against HireRight for failing to correct errors, which has led to lost job opportunities for candidates.
Sterling
Sterling, headquartered in New York City, serves sectors like technology, healthcare, and finance. Despite their size, Sterling has been criticized for delivering inaccurate criminal records and failing to notify applicants of adverse decisions. These practices have led to multiple legal actions against the company.
Checkr
San Francisco-based Checkr is known for its work with gig economy platforms like Uber and Lyft. However, many drivers have reported being unfairly deactivated due to errors in their background reports. Checkr’s dispute resolution process has been described as slow and opaque, leaving drivers without income while awaiting corrections.
First Advantage
Located in Atlanta, First Advantage serves industries like retail, healthcare, and transportation. The company has been criticized for being unresponsive to dispute claims and providing inaccurate background information. Applicants have reported being denied jobs or housing due to errors that First Advantage failed to correct.
Accurate Background
Irvine, California-based Accurate Background has faced complaints over incorrect criminal records and delayed responses to disputes. Despite its name, many applicants have experienced errors in their reports, with some losing out on job offers as a result.
TruView BSI
Based in Pearl River, New York, TruView provides screening services to government and non-profit organizations. Despite its reputation, the company has faced complaints over delays in processing and incomplete or outdated background information, which has caused some candidates to lose government positions unfairly.
Asurint
Asurint, headquartered in Cleveland, Ohio, claims to use AI for faster background screenings. However, many consumers report long delays and inaccurate data in their reports. Complaints also focus on Asurint’s poor customer service and slow dispute resolution process.
GoodHire
Operating from Redwood City, California, GoodHire serves small and mid-sized businesses. However, they have been criticized for errors in employment and criminal records, as well as slow communication with applicants seeking to correct mistakes.
What To Do if Your Rights Were Violated
If your background check report contains errors or your rights were violated during the process, you can take legal action under both the FCRA and ICRAA.
R23 Law’s California Background Check Violation Lawyers specialize in consumer protection and background check violations. Our experienced team can guide you through disputing the report and, if necessary, filing a lawsuit to recover damages.
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Contact R23 Law’s California Background Check Violation Lawyers today for a free consultation.
We offer services in multiple languages, ensuring that all consumers can get the help they deserve. Don’t let a background check error ruin your opportunities—reach out to R23 Law and let us help you protect your rights.
