Tag: Cannabis Retailer

Cannabis Retailer Reaches Settlement Agreement Over Unlawful Background Checks A Florida-based cannabis dispensary across the United States has agreed to resolve a class-action lawsuit claiming that the company violated the Fair Credit Reporting Act (FCRA). If approved, this settlement would resolve claims that the company failed to provide applicants with a copy of their background check and other information required under the FCRA. According to the complaint, the employer issued the named plaintiff a conditional offer of employment contingent upon the outcome of a background check. However, the employer rescinded the offer based on the background check report's result. In addition, the complaint alleges that the employer did not provide a notice that the potential employer intended to take adverse action based on the report, a copy of the background check, or a summary of their rights under the FCRA. A human resources manager later admitted the company mistakenly denied the named plaintiff's employment based on the report. Had he been provided with a pre-adverse action notice, a copy of the consumer report, and a summary of rights, they could have cleared up any confusion and allowed him to begin working for the defendant. The plaintiffs, in this case, argue that the defendant's policies violate the FCRA pre-adverse action requirements. Under the FCRA, employers intending to use a consumer report to make hiring decisions must provide applicants with a notice explaining they intend to make an adverse hiring decision based on the information. In addition, the employee must provide a copy of the report the employer used and a summary of the candidate's rights under the FCRA before making adverse hiring decisions. The class-action suit alleges that the defendant failed to meet the requirements and the plaintiffs deserve compensation. The parties recently reached a settlement agreement. The employer is not required to admit violations under the FCRA but must pay $60,500 to resolve the claims. Class members may receive a cash payment, the size of which varies based on the terms of the agreement and the number of class members filing the claim. The settlement website estimates that approximately 1,000 class members qualify for this suit. The final hearing to approve the settlement is scheduled for August 18th, 2022. As this class-action lawsuit and many others show, compliance with the FCRA in the employment screening process is crucial. Ensure your background check process is compliant, and find a screening provider you trust. Ensure the provider stays abreast of the ever-changing federal, state, and local requirements regarding employment background checks. Pre-employ can help your company stay in compliance with these new guidelines with free resources available to you. Download our guide on 5 Tips To Avoid FCRA Non-Compliance to discover more. Source

Tag: Cannabis Retailer

Cannabis Retailer Reaches Settlement Agreement Over Unlawful Background Checks

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