Class-action lawsuits could await employers that don't update a commonly used notice required by the Fair Credit Reporting Act (FCRA) when conducting background screens.

The Bureau of Consumer Financial Protection has issued a revised model summary of rights disclosure notice. Employers must give the document to job applicants and employees who've had adverse action taken against them—such as not being hired or being disciplined or fired—based on a background check.

Specifically, the form titled "A Summary of Your Rights Under the Fair Credit Reporting Act" has been updated to include information about security freezes and fraud alerts, stemming from a law passed in May 2018 in response to high-profile data breaches.

"While this compliance alternative can be used after the rule goes into effect, the bureau has advised that users should discontinue use of the older model forms published on Dec. 21, 2011," said Lindsay Demaree, a Ballard Spahr attorney in Las Vegas.

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