INDUSTRY NEWS

Home Depot to pay $1.8M to resolve FCRA class action

The resolution comes as a result of a 2013 lawsuit alleging the home improvement warehouse store's job applications used disclosure and authorization forms that contained extraneous information.

The plaintiff, Irene Fernandez, maintained that in the course of completing her job application she was required to sign two separate disclosure and authorization forms – both of which stated that Home Depot would be procuring a consumer report on applicants and sought to release the store from all liabilities all while detailing the possible repercussions of providing false or misleading information on the application.

This of course is not consistent with the FCRA’s requirement that disclosure and authorization forms contain only the disclosure that a consumer report will be obtained for employment and that this disclosure contain no extraneous information. As a result, Home Depot will now potentially have to pay roughly $15 to $100 to each of the estimated 120,000 job applicants who were provided the non-compliant forms as part of their job applications since April 2011.

Additionally, as part of the class action’s resolution, Home Depot has agreed to cease using the non-compliant forms and institute background check requests that comply with requirements of the FCRA.

Source: Law360.com, 4/21/2015

Posted: May 7, 2015