On March 15, the United States District Court for the Central District of California granted final approval of a Fair Credit Reporting Act class action against fast food restaurant McDonald’s. 

The named plaintiff, James Wesley Carter, originally brought the action against McDonald’s in July 2015 alleging that McDonald’s violates the rights of consumers by failing to provide job applicants with a clear and conspicuous disclosure, in a document consisting solely of the disclosure, that a consumer report may be obtained for employment purposes, in violation of section 1681b(b)(2) of the FCRA.  The settlement class includes all employees or applications for employment at a McDonald’s restaurant to whom McDonald’s did not provide the clear and conspicuous stand-alone disclosure required, from July 29, 2013 and continuing through the final resolution of this case. 

The settlement agreement provides for both monetary and injunctive reliefMcDonald’s has agreed to pay $950,000 to class members and has also ceased obtaining background reports on employment applicants as of November 12, 2015. 

This settlement is the latest in a string of class actions alleging that an employer failed to provide the required disclosure to job applicants.  For instance, Food Lion agreed to a $3 million settlement in March 2015 for the company’s failure to include a stand-alone disclosure.  Publix Super Markets likewise settled a class action for $6.8 million in October 2014, for the grocer’s alleged failure to include the proper disclosure.  This technical FCRA requirement continues to be a specific target for class action plaintiffs.