Background Check Violations
Improperly conducted background checks can cause as many problems as negligent hiring suits, as a Newport News call center recently found out. The company used LexisNexis Risk Management Inc., which has been accused of failing to let employees know of problems found in investigations and of creating too many issues for those who requested reviews. LexisNexis has agreed to pay a settlement that exceeds $20 million.
Christopher Colt North was the attorney representing the plaintiffs. On behalf of his clients he accused the company that the conducted the background checks of violating the Fair Credit Reporting Act. North said that he believes that this is the largest settlement for a case involving the 37-year-old piece of legislation.
The issue began when Telespectrum took over the call center and had the remaining employees submit to background checks. According to North, approximately 40 different individuals were fired when the results said that they had criminal records.
He went on to say that the reports were wrong about at least one individual. One woman was fired under the belief that she had been convicted of prostitution among other things. In actuality the woman had no record. The firm had mistaken her for another woman in Texas. Despite this, the lawsuit was not made on the grounds of inaccurate information. Instead North made his case based on the lack of notice received by the employees effected and the difficulty LexisNexis gave those who lost their jobs when they questioned the reports.
Employees effected did not receive notice from the firm until after they were already fired. According to North "the law says you're supposed to give someone the background check information before you fire them." He went on to say that "for people who were walked out based on a background check, even if they were really a felon, you have to give them a right to explain."
Employees who tried to questioned the reports were told that they must provide two types of identification before LexisNexis would investigate. North believes that between late notice and creating difficulty for those who wanted to oppose the results of the investigations that the company caused an impossible situation. In the end, he knows of only three individuals who were able to get their jobs back.
As part of the settlement, LexisNexis denied violating the Fair Credit act and all other wrongdoings, but agreed to pay a total of $20.7 million to the offended parties. The total sum included approximately $5.7 million which would handle the attorneys' fees.
