Tag: outsourcing

Labor Outsourcing Provider Agrees to Settles FCRA Class Action for $225,000 A labor outsourcing provider has agreed to nearly a quarter-million settlement. This agreement ends a class action lawsuit claiming that it committed violations of the federal Fair Credit Reporting Act (FCRA). The alleged failure states that the provider failed to give pre-adverse action notices to applicants and employees before taking adverse employment action. Under the FCRA, "If any person takes any adverse action with respect to any consumer that is based in whole or in part on any information contained in a consumer report, the person shall… provide oral, written, or electronic notice of the adverse action to the consumer." The required notice must have the following: Notification of intent to take adverse action A copy of the background report Contact information for the preparer of the report A summary of the recipient's FCRA rights A notice that the preparer did not influence the adverse decision In this case, the plaintiff alleges the defendant failed to comply with these requirements. Instead, he claims denial of employment opportunities based on a background check without providing a pre-adverse action notice. As a result, the plaintiff states that he never had the chance to view the report and judge whether the information therein was accurate. As a result, the plaintiff filed a complaint in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida. Subsequently, the case moved to the U.S. District Court for the Southern District of Florida. The parties engaged in arbitration and came to this settlement agreement which provides a settlement fund of $225,000 to resolve all claims. This settlement fund includes $90,000 in attorneys' fees, $5,000 to the named plaintiff, and the remainder divided on a pro-rata basis among members of the settlement class. Currently, the class expects approximately 300 members, meaning a per-member recovery of roughly $400. This settlement agreement still awaits a final fairness hearing and approval by the arbitrator on September 7th, 2022. As this case shows, employers must ensure that their procedures for performing background checks on applicants and employees fully comply with the FCRA, including all required notices. To do so, consider partnering with a background screening organization you can trust to remain updated with the ever-shifting state and federal requirements and help ensure that your policies stay in compliance. Keep your business up to date on new laws and regulations with Pre-employ’s free news resources. Contact a sales rep today. Source

Tag: outsourcing

Labor Outsourcing Provider Agrees to Settle FCRA Class Action for $225,000

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