A proposed class action claims that a transportation company violated the Fair Credit Reporting Act (FCRA) as well as state laws by obtaining background checks on prospective employees without first providing suitable disclosures. 

According to the complaint, the employer failed to provide candidates for employment with clear and conspicuous disclosures that a background check would be performed prior to obtaining a consumer report, as well as failing to provide a summary of their rights under the FCRA. The complaint alleges that the provided disclosure failed to include certain elements required by both California laws as well as the FCRA.

The plaintiff was employed by a large transportation company and claimed that the company obtained his credit report in April 2017 while considering him for a job. However, the background check disclosure form they gave him was not a standalone document, which the FCRA requires. Instead, the plaintiff claims the document included other information.

Furthermore, the plaintiff alleged that the defendant regularly failed to inform individuals of their right to ask for additional disclosures as provided in the FCRA and a written summary of their legal rights.

The lawsuit alleges that the transportation company also violated other similar laws in California by not supplying specific mandatory information, such as the nature and scope of the investigation, the identity of and contact details for the agency conducting the investigation, the source of the report, the specific basis under the California Labor Code for the use of the report, and a check box that would allow the person to ask for a copy of the report.

The case intends to represent people in the United States who the transportation company ran a background check in order to evaluate them for potential employment, retention, reassignment, or promotion sometime within the last five years or until a final judgment is entered. There has also been a separate class proposed for California residents who the company obtained reports for in the last seven years or until a final judgment is entered. the company 

The lawsuit was originally filed on April 13, 2022, in the Alameda County Superior Court before it was moved on May 24, 62022, to the Northern District Court in California.

As this proposed class action illustrates, it is critical to ensure compliance with all state and federal requirements prior to initiating a background check program. The best way to ensure that a program will be compliant is to partner with a professional background check provider that you can trust.

Ready to discover more about Pre-employ’s background checks? Speak to a sales representative today.

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