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Judge Rules in Favor of Employees in Background Check Class Action

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Teske Katz Kitzer & Rochel, along with co-counsel Nichols Kaster, represents a group of employees and prospective employees who were provided illegal background check disclosures by iQor. The case, Shoots, et al. v. iQor, is filed in the District of Minnesota and alleges that iQor’s authorization and disclosure forms violated the Fair Credit Reporting Act (FCRA). In a ruling today by Judge Susan Richard Nelson, the Court denied iQor’s motion to dismiss the suit and allowed the class plaintiffs’ claims to move forward. The complete decision is available here. 

Brian Rochel, partner at Teske Katz Kitzer & Rochel, argued the case on behalf of the plaintiffs. Doug Micko, one of the lead attorneys in the suit, remarked, “Judge Nelson’s order is a win to employees and consumers nationwide. Her ruling reaffirms what the majority of courts have held, that including extra information in disclosure forms violates the FCRA and infringes on the rights of employees and prospective employees to know what they are giving up.” 

Background checks—also referred to as credit reports or consumer reports–have grown exponentially in recent years, especially in the employment context. Nearly half of all employers now require employees and job applicants to authorize background checks, and hundreds of new companies that provide background checks are popping up around the country. Meanwhile, many of these companies and employers do not follow the strict state and federal guidelines that govern background checks and consumer credit reports, including the FCRA. This has led to significant issues for millions of people across the US. 

Teske Katz Kitzer & Rochel is a fierce advocate for employees and consumers whose rights are violated during the background check process. The ruling in Shoots v. iQor is one more step in the process to even the playing field for employees in this growing area. 

If you believe your rights have been violated, or have questions about background checks, credit reports or consumer reports, contact us today.

Scrutiny Increasing over Use of Background Checks for Employees and Consumers

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The increasingly widespread use of background checks, or consumer credit reports, has increased the chances that inaccurate, unfair and unlawful information published or collected about a person may have an adverse impact on his or her life. More and more, employers are requiring job applicants and current employees to undergo background checks, digging through information ranging from criminal history to credit and housing history.

John Oliver, on his show “Last Week Tonight,” which aired on Sunday, April 10, delved into this growing trend and the many problems it causes. The discussion is startling for many who are unaware of the wide-ranging and frequently negative impact that this practice is having, and it also touches on several of the laws that protect employees and consumers in this area. You can watch the segment here.

Consumers and employees have significant rights and remedies available to them when they submit to a background check or credit report. For instance, the Fair Credit Reporting Act (FCRA) requires employers provide notice to employees and potential employees prior to deciding whether to hire or to fire an employee. But many employers do not comply with this legal requirement. The Credit Repair Organizations Act (CROA) also contains legal protections that may apply. If you have been required to undergo a background check, please contact Teske Katz Kitzer & Rochel today to learn more about your rights.