INDUSTRY NEWS

Class action accuses Sears of using improper background check disclosure forms

The chain of American department stores allegedly failed to clearly and conspicuously disclose that they would be obtaining consumer reports on applicants for employment purposes – a violation of the Fair Credit Reporting Act.

According to the complaint, the forms that Sears did supply to prospective employees contained extraneous information – a practice prohibited under the requirements of the FCRA. Under the FCRA, businesses who wish to procure consumer reports on current or prospective employees are required to provide those individuals with “a clear and conspicuous disclosure…in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes.”

Additionally, the plaintiff, who was initially offered a job by Sears in September 2014 only to have the offer revoked later that year due to the results of his background check, claims that Sears failed to provide him with a copy of his consumer report in a timely manner, which did not afford him a “reasonable notice period in which to challenge any inaccuracy in the consumer report,” and also failed entirely to provide to him with a copy of his rights under the FCRA.

The proposed class size seeks to represent any individuals who applied to work at Sears from May 6, 2013 until present day. The suit also seeks to cover court costs, plus an unspecified sum in damages.

Source: Legal Newsline Legal Journal, 6/19/2015

Posted: July 8, 2015