For immediate release:
July 11, 2007, 10:00 a.m.
Contact:
David McGuire
(202) 637-9800 x106
WASHINGTON -- The Center for Democracy and Technology (CDT) today joined with the International Brotherhood of Teamsters, Rainbow PUSH, the National Workrights Institute, the Legal Action Center and the National Employment Law Project in urging the Federal Trade Commission (FTC) to protect workers by enforcing rules that require employers to provide proper notice and obtain consent before subjecting employees to criminal background checks. The FTC petition is the first step in a broader effort to defend workers' rights by strengthening enforcement of the Fair Credit Reporting Act (FCRA).
In 2006, the Department of Homeland Security and the Department of Transportation recommended that rail carriers secure their properties by, among other things, conducting criminal background checks on contractors with access to critical facilities. According to the petition, several contractors initiated those checks without obtaining proper consent from their employees, as required under FCRA. Those checks led to many employees -- including some who were misidentified as former criminals -- losing their livelihoods without any recourse for defending their reputations.
A copy of the joint petition is available on the CDT website.
"The ability of an ordinary American to get a job, qualify for credit or even find a place to live depends increasingly on the information collected an stored by massive data aggregators," said Ari Schwartz, Deputy Director of the Center for Democracy and Technology. "The Fair Credit Reporting Act (FCRA) is one of the few laws that protect Americans against the improper collection and use of their sensitive personal information. Allowing employers to circumvent those protections puts workers at grave and needless risk."
Since 2001, transportation workers have come under increasing scrutiny as authorities have sought to bolster security at docks, on railways and in other settings where large quantities of hazardous materials are regularly handled. Although the 2006 DHS-DOT recommendations were not legally binding, many railways adopted them as part of an ongoing effort to improve security.
The contractors cited in the petition -- H&M International Transportation Inc., Quality Terminal Services LLC, Rail Terminal Services LLC and Renzenberger Inc. -- obtained the background checks through a program called e-RAILSAFE (operated by e-VERIFILE).
The petition identifies a pattern of instances in which employees were told that the background checks were required by law -- which was not the case -- and signed consent forms only after being told that they were legally compelled to do so. The petition also details how the companies failed to provide "clear and conspicuous" disclosure to workers as required by FCRA and failed to notify them if adverse actions were taken as a result of a background check.
The groups ask that the FTC initiate a wide-ranging investigation into the FCRA violations cited in the petition and other, similar violations which may be widespread in the transportation sector. The groups worked closely with Chicago attorney Tamara Holder who is representing the affected rail workers in a private action.
"As we step up efforts to protect ourselves against new threats, it becomes even more vital that the government enforce the laws intended to protect Americans against unnecessary privacy invasions," Schwartz said.
Correction: In a petition filed with the Federal Trade Commission on July 11, CDT incorrectly identified Quality Transportation Services of Ashland, Virginia as a respondent. The petition has since been amended to include the name of the actual intended respondent, Quality Terminal Services of Cicero, Illinois, and to remove that of Quality Transportation Services. To CDT's knowledge, Quality Transportation Services has no involvement whatsoever in the activities addressed in the petition. The petitioners regret the error. The above release has been corrected to reflect this change.