Most employers conduct criminal background checks on job applicants nowadays. But these checks are not always accurate. One of the most common mistakes is misreporting misdemeanor convictions as felonies. Background check companies often make this mistake because prosecutors initially charge defendants with a felony but then reduce the charge to a misdemeanor under a plea agreement.

This mistake can cost you a job. Employers routinely deny job applications based on felony convictions. And once you’re identified as a felon, it can be difficult if not impossible to erase the stigma associated with it.

If your background report wrongly states that you were convicted of a felony, you may have a claim against the background check company, your potential employer, or both. You may be entitled to compensation.