Can I Sue for Wrongful Background Check

Have you ever lost a job because of a background check error? Imagine preparing for weeks, nailing every interview, only to be rejected for something that wasn’t even true. Frustrating, right? Let’s dive into when you can sue for wrongful background checks and what your rights are under U.S. law.

What is a Wrongful Background Check?

Examples of Wrongful Background Checks

Wrongful background checks happen when the information reported is incorrect, outdated, or mixed up with someone else’s records. For example:

• Listing a felony you never committed
• Showing charges that were dismissed
• Reporting on the wrong person with a similar name

How Errors Happen

These errors often stem from:

• Data entry mistakes
• Identity confusion (same name, different person)
• Incomplete court records
• Reporting agencies not updating information

Can You Sue for Wrongful Background Checks?

Grounds for Suing

Yes, you can sue if:

• The background check contained false information
• The employer didn’t give you proper notices
• The reporting agency failed to correct errors after your dispute

Types of Lawsuits

Your lawsuit could claim:

• Negligent violation – agency failed to ensure accurate reporting
• Willful violation – agency knowingly or recklessly reported false data

Employers’ Responsibilities

Notice and Consent Requirements

Before running a background check, employers must:

• Notify you in writing
• Get your signed consent

Pre-Adverse and Adverse Action Notices

If they plan to deny you employment based on the report, they must:

1. Give you a pre-adverse action notice with a copy of the report
2. Allow you time to dispute errors
3. Send an adverse action notice if they finalize the decision

How to Identify if You Have a Case

Reviewing Your Background Report

Always ask for a copy of your background check, especially if denied employment. Look for:

• Incorrect criminal records
• Wrong addresses or employment history
• Outdated information

Evidence Needed for a Lawsuit

Keep:

• Copies of your background report
• Employer communication
• Dispute letters sent to the reporting agency

Steps to Take Before Suing

Disputing Errors with the Reporting Agency

Under FCRA, you must first:

• File a dispute with the agency reporting the error
• Wait for their investigation and correction

Contacting an Employment Lawyer

If the agency fails to correct the issue, contact an employment attorney specializing in FCRA cases for advice on filing suit.

Potential Compensation for Wrongful Background Check Lawsuits

Statutory Damages

You may receive $100-$1,000 per violation even if you didn’t suffer actual harm.

Actual Damages

Covers financial losses like lost wages due to job rejection.

Punitive Damages

Awarded if the agency or employer acted willfully or recklessly in violating the FCRA.

Common Mistakes to Avoid

Ignoring Notice Letters

If you receive a pre-adverse action notice, don’t ignore it. Use the time to correct errors before final decisions are made.

Failing to Review Reports Regularly

Request your background reports occasionally to ensure accuracy before applying to sensitive jobs.

How Long Do You Have to Sue?

Statute of Limitations under FCRA

You have two years from the date you discovered the violation or five years from the date of the violation, whichever is earlier, to file a lawsuit under FCRA.

Preventing Future Wrongful Background Checks

Regular Self-Checks

Order your background report from major screening agencies yearly to verify accuracy.

Monitoring Services

Consider subscribing to identity or background monitoring services if you’re applying for jobs in finance, law enforcement, or security sectors frequently.

Conclusion

Wrongful background checks can ruin your career and reputation overnight. But you’re not powerless. Know your rights under FCRA, dispute errors quickly, and consult a lawyer if you face discrimination due to false information. Your future shouldn’t be derailed by someone else’s mistake.