Indianapolis Woman Files FCRA Claim Against Area Employer

By Michael Klazema on 5/2/2017

A healthcare management company based in Indianapolis is facing a lawsuit over an alleged violation of FCRA provisions, per a report from the Indianapolis Star. Last March, Michele Petry applied for a job with healthcare company IDE Management. Petry, a nurse with a record that the Star describes as “squeaky clean,” was surprised when IDE informed her that they could not hire her due to findings on a criminal background check.

As coverage explains, under the Fair Credit Employment Act, employers who use background checks to vet their prospective employees must follow a strict and specific policy. For instance, under FCRA guidance, employers must notify individuals in writing when they make adverse employment decisions related to background check findings. If an employer makes an employment decision based on a background check, the employer must provide the job candidate with a copy of the background check report and the candidate must have an opportunity to dispute the accuracy of the background check findings.

Petry applied for a nursing job with IDE in March of 2016, went through the full interview process, and was given a conditional offer of employment. Once she passed a background check, coverage notes, the job was hers.

When Petry submitted to the background check, it turned up several felonies in her name, including convictions for theft and possession of drug paraphernalia. Petry claims the record is incorrect, coverage notes.

Petry alleges that IDE quickly rescinded her job offer but did not tell her why—either verbally or in writing—until she asked. The company cited findings from its background check process but refused to furnish her with a copy of the background check report or give her contact information for the company that prepared the report. In the Indianapolis Star article, the background check company is referred to only as “an unknown consumer reporting agency.”

If Petry’s allegations are true, then IDE may have violated the FCRA by not providing a timely written explanation post-check and by refusing to provide Petry with a copy of the report. IDE Management also did not provide Petry with the name, address, and phone number of the company that prepared the background check report. Under the FCRA, individuals who lose job opportunities due to background checks have the right to contact the background check company and ask for an additional copy of the background check report within 62 day, coverage explains. Candidates have the right to dispute the findings of the background check report with the company that compiled it.

According to the Indianapolis Star, IDE Management has declined to comment on Petry’s lawsuit. The company could face fines or other consequences if found guilty of FCRA violations.




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