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Vast Tracking Database May Contravene FCRA

EMPLOYEE PRIVACY—U.S.

April 3, 2013

The New York Times reports on databases created by retailers across the nation that track employees accused of workplace theft. Retailers tap into the databases in order to avoid applicants who have been accused of such crimes by previous employers. In many cases, the report states, employees “have no idea that they admitted to committing a theft or that the information will remain in databases.” Presently legal, the databases are being scrutinized by the Federal Trade Commission for potential violations of the Fair Credit Reporting Act. One lawyer familiar with the system said such a database is a “secret blacklist” and added, “The employees don’t know about it until they have already been hurt.” (Registration may be required to access this story.)
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