In May 2025, staffing giant Robert Half International, Inc. agreed to a $4.38 million settlement in a class action lawsuit alleging violations of the Fair Credit Reporting Act (FCRA) related to its background check practices. The lawsuit claimed that Robert Half took adverse action against job applicants without first providing them with a copy of their background check and a written description of their rights, as required by the FCRA .
This case serves as a cautionary tale for businesses, especially those on Long Island, New York, about the importance of complying with federal background check regulations. Failure to do so can result in significant legal and financial consequences.
The Importance of FCRA Compliance
The FCRA mandates that employers must follow specific procedures when using consumer reports for employment purposes. This includes:
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Providing a clear and conspicuous disclosure to the applicant that a consumer report may be obtained for employment purposes.
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Obtaining the applicant’s written authorization before procuring the report.
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Before taking any adverse action based on the report, providing the applicant with a copy of the report and a summary of their rights under the FCRA.
Non-compliance with these requirements can lead to lawsuits, hefty settlements, and damage to a company’s reputation.
How U.S. Background Screening Helps Businesses Stay Compliant
Since 1999, U.S. Background Screening (www.usbscorp.net) has been assisting businesses in conducting thorough and compliant background checks. Here’s how partnering with a reputable screening company can help:
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Expertise in FCRA Compliance: U.S. Background Screening stays up-to-date with federal and state regulations, ensuring that all background checks are conducted in compliance with the law.
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Comprehensive Screening Services: Offering a range of services, including criminal background checks, employment verification, and credit history checks, tailored to meet the specific needs of each client.
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Customized Solutions: Understanding that each business is unique, U.S. Background Screening provides customized screening solutions that align with a company’s specific requirements and industry standards.
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Efficient and Accurate Reporting: Utilizing advanced technology to deliver timely and accurate reports, enabling businesses to make informed hiring decisions quickly.
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Dedicated Support: Providing ongoing support and guidance to clients, helping them navigate the complexities of background screening and maintain compliance.
Bottom Line…
The Robert Half settlement underscores the critical importance of adhering to background check regulations. For businesses on Long Island, partnering with a trusted screening provider like U.S. Background Screening can mitigate risks, ensure compliance, and protect against potential legal challenges.
To learn more about how U.S. Background Screening can support your business’s hiring processes, visit www.usbscorp.net or contact Andrew Klein directly for a consultation.
