Recently, the United States District Court for the Middle District of Tennessee has signed off on a proposed class settlement between Publix Super Markets Inc. (“Publix”) and Erin Knights, individually and as a representative of a class (“Knights”). Knights brought an action under the Fair Credit and Reporting Act (“FCRA”), alleging that Publix’s computerized background check authorization webpage, which is included in their job application process, violated the FCRA. Specifically, Knights alleged that neither the background check application screen or any other part of the application process complied with the FCRA requirement that an entity procuring a consume report for employment reasons disclose that fact in a document that consists solely of that disclosure.
Rather, Publix’s limited disclosure violated the FCRA requirement because the background check authorization screen contained extraneous information. Specifically, the background check authorization screen included a statement that purported to release Publix from liability in connection with any decisions made with the applicant’s employment based on the information reported. Knights alleged that this extraneous information effectively undercut the importance of the background check authorization and violated the FCRA. While this case was never fully litigated, Knights argument was clearly strong enough to result in a $6.8 million dollar settlement between the Plaintiff class and Publix.
The Employment Lawyers at Fitapelli & Schaffer frequently represent employees who have been subject to background checks that were in violation of the Fair Credit and Reporting Act. Please contact us at (212) 300-0375 to schedule a free consultation to further discuss your rights. For more information, please visit our website,www.fslawfirm.com.