Employer Reaches $950k Settlement in Disclosure Form Class Action
1 min read
Published
May 23, 2023
An auto parts chain recently settled a class action that alleged the disclosure form used was in violation of the Fair Credit Reporting Act (FCRA). The maximum $950k settlement will result in an estimated settlement amount of $2.92 per class member, with the attorneys receiving $237,500 and the named plaintiff receiving $7,500. The settlement covers individuals who completed a disclosure and authorization form and for whom a consumer report was procured from January 31, 2015 to February 17, 2021.
As alleged in the complaint, the disclosure form violated the “solely” requirement as it included a waiver of liability and violated the “clear and conspicuous” requirement as it combined both federal and state disclosure language into a single document. The plaintiff thus claimed he was confused of his rights and thus did not provide a valid authorization for the background check request.
The employer denied liability or any wrongdoing associated with the claims alleged in the complaint.
You might also like
Keeping Up with Compliance: Recent FCRA Litigation Trends Employers Need to Watch
We cover recent FCRA cases shaping the employment background screening landscape and highlight emerging legal trends employers should have on their radar.
5 Golden Rules for Property Operators
The following five principles reflect what effective, modern tenant screening looks like today and how property teams can protect their assets while meeting evolving expectations.
3 Drug Screening Assumptions Employers Need to Revisit
During our recent webinar, "Can You Spot the Lie? The Employer's Drug Testing Reality Check," three themes stood out as particularly important for employers evaluating or updating their drug testing programs.