On July 25, the Missouri Court of Appeals affirmed a state trial court’s dismissal of a putative Fair Credit Reporting Act class action against a large retailer based on standing issues. Most notably, the court did so in reliance on Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (May 16, 2016), and Article III
Defendant Seeks To Stymie Plaintiff’s ‘False Pretense’ Claim Under the FCRA
In Patel v. Comcast Corporation, plaintiff consumer Mounang Patel brought a purported class action lawsuit against defendant Comcast Corporation, arguing that Comcast unlawfully obtains background checks (also referred to as consumer reports) on consumers under false pretenses. On July 17, Comcast moved to dismiss this class claim on the ground that Patel failed
Indiana Governor Issues Executive Order “Banning the Box”
Indiana Governor Eric Holcomb has issued an executive order “banning the box” for jobs within the executive branch. Effective July 1, applicants for employment in the executive branch will no longer be subject to inquiries about their criminal history at the initial application stage, unless the conviction for a specific crime would
Financial Investment Company Named in Background Check Lawsuit
A nationwide financial investment firm was named on June 30 in a putative class action lawsuit filed in federal district court in Oregon. The case, filed by plaintiff Dustin Kampert, alleges the firm violated the Fair Credit Reporting Act in its background check process related to employment or, alternatively, procured consumer reports without a permissible
CFPB Issues Rule Banning Class Action Waivers In Arbitration Provisions
On July 10, 2017, the Consumer Financial Protection Bureau issued its long-awaited final rule banning class action waivers in arbitration provisions for covered entities, as well as requiring the covered entities to provide information to the CFPB regarding any efforts to compel arbitration. This rule is of significance to any financial services company that utilizes
Court Certifies FCRA Background Check Disclosure Claim Against Employer That Relied on Vendor’s Disclosure Form
A new Florida federal district court case is yet another reminder of the minefield of federal and state regulations governing employer criminal background check forms. In Graham v. Pyramid Healthcare Solutions, the Court certified a class action against the employer under the federal Fair Credit Reporting Act and ruled that whether the employer willfully
USPS’ Motion to Dismiss Putative FCRA Class Action Denied by Wisconsin Magistrate Judge
A Wisconsin federal magistrate judge denied the United States Postal Services’ attempt to dismiss a Fair Credit Reporting Act putative class action, holding that the plaintiff’s complaint sufficiently alleged an injury-in-fact.
According to the complaint, plaintiff Rondo Tyus applied for a security clearance to work at the USPS. The USPS obtained a criminal background report,
Employer Seeks Supreme Court Review of Ninth Circuit Finding of Willful FCRA Violation
On January 20, 2017, the Ninth Circuit Court of Appeals issued a decision of first impression in Syed v. M-I, LLC, a putative class action, when it held that a prospective employer willfully violated the Fair Credit Reporting Act by including a liability waiver in its FCRA background check disclosure form.
In the underlying
Five Guys Faces Background Check Lawsuit Over Allegedly Improper Disclosures
Five Guys Enterprises LLC—franchisor of the popular Five Guys Burger Co.—and a California franchisee are facing a lawsuit from a former employee alleging numerous violations of the federal Fair Credit Reporting Act and California state law. The plaintiff, Jeremy Lusk, alleges he began working for Five Guys in August 2016. He alleges that in the
District Court Rejects Notion That An Improper Background Check Disclosure Automatically Renders A Subsequent Background Authorization Improper
In the world of background check litigation under the Fair Credit Reporting Act (“FCRA”), one theory that plaintiffs frequently assert is that if the background check disclosure provided by the employer violates the FCRA, then the authorization based on that disclosure is also necessarily inadequate. Under the FCRA, an employer desiring to obtain a criminal