Many large companies across the country are finding themselves susceptible to lawsuits due to their failure obtain adequate authorization from job applicants prior to conducting a background check.

Employers, like Whole Foods and Dollar General, have been successfully sued for failing to adhere to the Fair Credit Reporting Act (FCRA), which was enacted in 1970 to protect the privacy of individuals’ personal information, as credit reporting agencies began distributing credit reports for credit card companies, banks, and employers.

What does the FCRA have to do with job applicants and employers getting sued?