When I first read the story about Uber Technologies getting slammed with a $7,500,000 class action lawsuit; I thought – businesses can be vulnerable no matter how big or small. If a mega company can slip up, what’s to prevent it from happening in anyone’s business?
Hit hard for a compliance error that could have easily been avoided
We are all familiar with Uber as the transportation company which hires private citizens using their own vehicles to essentially act as a taxi service. Since its inception in 2010, Uber Technologies, has grown into a $68 billion enterprise staffing over 10,000 people, which I’m assuming, must include a large legal staff.
According to the class action lawsuit filed, Uber failed to provide proper notice to potential hires about its intent to procure background check reports. Initially, Uber Tech neglected to obtain suitable authorization from applicants before obtaining background check reports. Once obtained they failed to provide copies of the reports. This is in clear violations of the Fair Credit Reporting Act.
What Uber should have done
- Obtained authorization from the applicant prior to running a background check
- Provided copies of the background check report to the applicant
- Furnished the applicant with a summary of their rights under the FCRA before taking any adverse employment action.
Failure of not having all the facts and data to work with could cost a company its best year
Maybe you don’t have 7+ million at stake, but what you do have is equally as valuable on whatever scale your business is operating. No one’s business can stand to lose money or credibility over issues that should and could be avoided.
When considering potential employees always work with a reputable and knowleagable screening agency. Look for a background screening company which:
- Knows the laws of the Fair Credit Reporting Act
- Assures privacy, fairness, and accuracy of information
- Abides by the FCRA and provides updates regarding Federal and State rules and regulations
- Offers comprehensive, simple to understand reports
- Provides templates and documentation to keep your business compliant
Relying on professionals should mean peace of mind. You need to be comfortable with people you can trust who assist you in keeping your business’s good reputation while maintaining a sound, unfaltering infrastructure.
Take the lesson and avoid an Uber of an error of your own. Check out our services and how we can help you at www.accucheckscreening.com The leader in background screening. “Hire Right the First Time”.