U.S. District Judge Vince Chhabria granted the motion to dismiss the case, concluding that while the film studio’s applications may have in fact buried the credit check disclosure, the company did not run afoul of federal law requirements.
“Even if inclusion of the certification in Paramount's disclosure form did not comply with a strict reading of [the FCRA’s] requirement that the document consist solely of the disclosure and the authorization, it is not plausible that Paramount acted in reckless disregard of the requirements of the FCRA by using this language,” Judge Chhabria ruled. “Nor is it plausible that Paramount violated the FCRA by obtaining the credit checks pursuant to the release found elsewhere in its employment application, rather than its FCRA disclosure and authorization form.”
The lead plaintiff in the case, Michael Peikoff, had alleged the company’s applications did not provide job seekers with adequate disclosures in regards to the company’s intention to procure credit reports on them. Furthermore, Peikoff alleged the applications contained language seeking to release Paramount from all liability for any use or disclosure of the information provided. More about the initial filing of the lawsuit can be found in our previous News to Note article located here.
Judge Chhabria’s ruling stands out among recent cases containing similar allegations. Several other companies, such as Food Lion and Whole Foods, have recently doled out multi-million dollar settlements in cases concerning those companies failure to provide job applicants with clear and conspicuous disclosure and authorization forms on their job applications.
Source: Deadline.com, 3/30/2015
Posted: April 8, 2015