A proposed class action against Dave & Buster’s Inc., accusing the restaurant and entertainment chain of violating the Fair Credit Reporting Act by using background checks to make adverse employment decisions without sharing the results with employees or applicants, was dismissed with prejudice after the parties submitted a joint stipulation for dismissal. The suit was filed in early 2016.
Plaintiff Joseph Alvarez sought to certify a class of Dave & Buster’s employees and job applicants in the U.S. “against whom adverse employment action was taken, based in whole or in part, on information contained in a consumer report obtained within five years of the filing of this complaint through the date of final judgment in this action, who were not provided the proper pre-adverse notice as required by the FCRA.”
In the complaint, Alvarez alleged that he applied for a job as a line cook with David & Buster’s and that his employment offer was withdrawn after Dave & Buster’s received unfavorable results from a background investigation. Alvarez alleged that Dave & Buster’s failed to provide a copy of the consumer report to Alvarez before taking the adverse action. Alvarez also alleged that Dave & Buster’s regularly obtained and used background checks on “prospective and existing employees, and frequently relies on such information, in whole or in part, as a basis for adverse employment action such as termination, reduction of hours, change in position, failure to hire, and failure to promote.
Dave & Busters removed the suit to the Middle District of Florida on February 12. In its answer, Dave & Buster’s denied that it conducted a background check on Alvarez or any other individuals who would have applied for a line cook position. Dave & Buster’s also asserted that Alvarez lacked standing to bring the action.
The parties’ joint stipulated dismissal did not specify whether they had settled or whether Alvarez had agreed to dismiss the claim.