A Connecticut-based cruise line recently received a proposed class action lawsuit. According to the case, it failed to comply with the Fair Credit Reporting Act’s (FCRA’s) pre-adverse action requirements. For example, the suit alleged the failure to provide job applicants with a copy of their background checks before making employment decisions.

The Case

A former applicant for employment with the cruise line filed this class action lawsuit after the employer denied them employment. The plaintiff alleged that the company rejected their application based on a standard background report conducted by a third-party screening provider. According to the complaint, the named plaintiff applied in March 2023. After an interview, they received a conditional offer of employment contingent on background check results.

However, the plaintiff claimed the company received an inaccurate background check. This mistake led to the cruise line retracting the job offer without providing a copy of the consumer report and a written description of their rights under the FCRA. Furthermore, they stated that the cruise line did not comply with FCRA requirements willfully and negligently. The plaintiff explained that the employer chose not to provide a pre-adverse action notification requirement. 

The plaintiff claims that the background check performed by a third-party company did not include the pardon he obtained from the governor of Wisconsin in 2022. According to a press release, the plaintiff committed robberies with a friend when he was 23. However, he received a pardon and now coaches basketball and mentors youth in Milwaukee.

The plaintiff explained how they asked the cruise line to provide a copy of the background check used in the decision. They also wanted to know why the company rescinded the job offer. However, the cruise line did not answer, so the plaintiff contacted the background check company directly. After receiving the report, the plaintiff realized it did not mention the pardon.

The Result

As a result, the plaintiff filed the lawsuit when the employer failed to do their due diligence under the FCRA. The proposed class action includes any individual who lost their job or had an offer rescinded by the cruise line. However, it applies if the adverse action happened after undergoing a background check for the cruise line within the last five years. 

This case shows how important it is for employers to comply with the FCRA during the hiring process. The best way to ensure your company complies with the FCRA and other laws related to the background screening process is to partner with a background check company you can trust.

JDP makes background checks easy and reliable. Speak with a compliance expert today.

Source