ADP Includes Outdated Adverse Information in Consumer Background Checks, Class Action Claims

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A proposed class action alleges ADP Screenings and Selection Services, Inc. has illegally included in consumer background reports adverse information that predated the reports by more than seven years.

The 15-page lawsuit says that it is a violation of the federal Fair Credit Reporting Act (FCRA) to include in a consumer report adverse information that is more than seven years old.

The plaintiff in the case is a Maricopa County, Arizona resident who says she was a full-time employee of The Results Company when her employer ordered a background check from ADP. According to the lawsuit, the defendant reported a “hit” from its governmental registries search that indicated that the plaintiff’s nurse/nurse’s aide license had been revoked or suspended on July 20, 2011. The suit claims that the plaintiff was terminated as a result of the adverse information reported by ADP.

The lawsuit argues that the revocation of a license “clearly constitutes” adverse information and should have been flagged by ADP as outdated given it predated the plaintiff’s consumer report by more than seven years. ADP nevertheless failed to have systems in place to prevent this information from being disclosed to the plaintiff’s employer, according to the case.

The plaintiff says ADP’s “inaccurate and misleading” background check report caused her to suffer injuries including harm to her reputation, loss of employment and emotional distress.

The lawsuit looks to cover anyone in the U.S., including its territories and political subdivisions, who was the subject of a background check report that ADP furnished to a third party at any time within the past five years and until resolution of this action, and the report included an adverse item of information, other than a record of a criminal conviction, that antedated the report by more than seven years.

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