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FTC Settles with Rail Companies, Responds to CDT Petition

Two companies that fired employees and rejected job applicants without informing them that those decisions were based on background checks have settled charges and agreed to pay $77,000 in civil penalties to the FTC. The FTC brought the charges in response to a petition filed by CDT and a group of advocates noting numerous violations of federal rules that require employers to provide proper notice and obtain consent before subjecting employees to criminal background checks. The FTC found the companies to be in violation of the Fair Credit Reporting Act (FCRA), which helps to protect consumers by requiring employers to inform employees and job applicants about the use of background checks in making employment decisions.