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Home Depot is Sued for Conducting Non-Compliant Background Checks

On Behalf of | Jul 17, 2014 | Consumer Protection

Home Depot is just one of the latest giant retailers to be sued
under the Fair
Credit Reporting Act
(“FCRA”) for failure to comply with the
employment background check
laws.  As the law lays out
strict but clear guidelines for employers to follow, companies
continue to ignore consumer rights during the application process
when conducting employment background checks and repeatedly violate
the law.  In Henderson v. The Home Depot, Inc., a case filed
in the Northern District of Georgia, Trent Henderson, a Home Depot
job applicant alleged the retailer conducted employment background
checks on both current and potential employees without first
notifying them or supplying them with a copy of their credit file
prior to taking adverse action based on the information contained
in the reports, conduct which is in direct violation of the

In Henderson, plaintiff Trent Henderson applied for a job over
the internet with Home Depot in Texas.  After completing his
on line application he was directed to a page requiring him to
agree to special terms and disclosures outlined.  After
successfully completing his application, he was called by the
company for an interview and willingly submitted to a drug test at
Home Depot’s request.  At a later date, Home Depot notified
Mr. Henderson that he would not be offered the job as a result of
information obtained in his employment background check.
According to Mr. Henderson, Home Depot notified him that that he
would not be hired for the job based on information in his credit
report.  Mr. Henderson states that he was not properly
notified of Home Depot’s decision not to hire him and not provided
with a copy of his credit
used to make its decision.

Under the FCRA, an employer who
takes adverse action against an applicant
based on information
contained in his or her credit report, must notify the applicant
that it is taking such action based on the findings contained in
the report.  The FCRA mandates that an employer who is going
to review a credit report for employment purposes must first
provide written notice to the job applicant or current employee and
must then obtain written permission from that person to access his
or her credit file.  After receiving permission, if the
employer decides not to hire the individual based on its findings
in the report, it must provide the person with a pre-adverse action
letter, a copy of the report used in making its decision and notice
of the individual’s rights under the FCRA.  After receiving
the report, the employer must give the applicant or employee a
reasonable amount of time, no less than five days, to review the
report and contest any inaccurate information contained in the
report.  In Henderson v. Home Depot, Inc., Mr. Henderson
states he was not provided with any of his information and not
given an opportunity to contest the potentially inaccurate
information contained in his credit report.

If you believe your rights have been violated by your employer
or potential employer during the application process, contact
SmithMarco P.C. for a completely free
case review