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Employer Faces Class Action Alleging Deficient Adverse Action Process

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A nationwide hardware retailer is facing a proposed class action resulting from allegations the employer violated the Fair Credit Reporting Act.

The Complaint

As alleged in the complaint, the employer obtained a background check following a conditional offer. According to the plaintiff, when he contacted the employer for an update, he was told his offer was rescinded based on the background report which included criminal convictions that did not belong to the plaintiff. The complaint alleges the employer took adverse action based on the background report without providing the plaintiff with a copy of the report or the document “A Summary of Your Rights Under the Fair Credit Reporting Act.” The proposed class seeks to represent individuals who were denied employment without the employer following the proper adverse action process in the prior five (5) years from the complaint filing date.

Employers: Take Note

Employers are encouraged to review their adverse action processes and letters with qualified legal counsel on a routine basis and must take into account any applicable local or state laws that may require modification of the process or letters required under the Fair Credit Reporting Act.