Databases used by some background-check agencies have been used to deny employment on the basis of store security interrogations and admission forms signed by employees. The idea of running a background check on potential employees is not new, and nearly every retailer in Wisconsin and across the nation uses them. However, the inclusion of massive databases of information filed by former employers may be a breach of employee rights under the Fair Credit Reporting Act.
Legal protections are available for potential employees, and anyone denied employment based on inaccurate or misleading background checks, especially checks citing the use of these employee databases, may have grounds to file a civil lawsuit. Illegal workplace discrimination places a serious burden on the lives of people simply trying to earn a living. An attorney with experience in employment law may be able to help workers who have been denied employment.
Source: The New York Times, "Retailers Track Employee Thefts in Vast Databases," Stephanie Clifford and Jessica Silver-Greenberg, April 2, 2013