On July 19th, 2022, a former employee of a logistics company filed a lawsuit that claimed the company violated the Fair Credit Reporting Act (FCRA) by performing employee background checks without proper disclosure. The lawsuit specifically refers to FCRA Section 15 U.S.C. § 1681b(b)(2)(A)(i)(ii), which states that a background check cannot be obtained unless a clear, and visible, written disclosure has been given to the employee. It also requires that the disclosure be written on a document consisting solely of the disclosure and that the employee has given written authorization for procurement of the report.
The plaintiff filed the lawsuit with the U.S. District Court for the Central District of California. All allegations were made by the plaintiff based on information and belief that the company violated FCRA requirements. The company has reportedly failed to include or obtain certain information and included additional information that should have remained separate from the disclosure. It is reported that the company failed to obtain proper authorization before conducting a report, failed to include a summary of rights, and failed to make the disclosure evident by hiding it in a small font. Additionally, the disclosure contained superfluous information, authorization for third-party access to information, and a liability waiver.
The FCRA 15 U.S.C § 1681 was established by Congress in 1970 to promote accuracy, fairness, and privacy of employee information filed under consumer reporting agencies. It also aims to protect employees from willful and/or negligent inclusion of inaccurate information in consumer reports. This lawsuit seeks to represent current, former, and prospective employees who applied to the company and had a background check within the last five years. Those who wish to file a claim will be eligible to do so until the final date determined by the judge.
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