Hardware Retailer Faces Class Action Over Alleged Failure to Provide Adverse Action Notices

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Hardware Retailer Faces Class Action Over Alleged Failure to Provide Adverse Action Notices
March 8, 2023

A proposed class action addresses a major hardware corporation’s failure to prospective employees. According to the case, the hardware company systematically violated the Fair Credit Reporting Act (FCRA). This violation involves not providing a copy of the employees’ background checks and a summary of their rights before making adverse employment decisions. Allegedly, the company made these decisions based on information found in the background checks.

According to the plaintiff, a warehouse in Florida operated by the company scheduled him to work and rescinded the offer before he could start. He claimed the decision came after the company obtained a consumer report that incorrectly listed criminal convictions for crimes he did not commit. Finally, the plaintiff emphasized that the company neglected to send him a copy of the consumer report or a summary of his rights under the FCRA before it took adverse action.

Furthermore, the plaintiff asserted that the company did not provide adequate time to correct any inaccurate information. The lawsuit added that this failure to supply disclosures required by the FCRA also affected other individuals in similar situations. As a result, the company’s negligence caused the class members significant harm to their finances and reputation. 

The class action suit intends to represent all natural persons affected by this violation. Those involved will include anyone from five years before the filed complaint and continue through the conclusion of this case:

  • Applied for a job with the defendant 
  • Were the subject of a consumer report that the defendant obtained and used for purposes of employment 
  • Were the subject of an adverse employment action taken by the defendant 
  • Were not supplied with a pre-adverse action notice, a copy of the consumer report, and/or a written summary of their rights as provided by the FCRA

Employers must ensure they comply with the FCRA to avoid potential lawsuits. However, doing so means more than just complying with the requirements before taking adverse action. It also includes following the regulations concerning obtaining background checks and what to do after taking adverse action.

These regulations often prove confusing and challenging for employers. As this case revealed, even a minor mistake can lead to a lawsuit. The best way to ensure you remain compliant with FCRA regulations is to partner with a trustworthy background check company.

Background checks are made easy with Pre-employ. Ask any questions you may have and learn more by contacting a sales rep today.