INDUSTRY NEWS

Chipotle the target of nationwide class action for alleged FCRA violations

The restaurant chain allegedly veiled their background check disclosure and failed to provide applicants with written summaries of their rights under the Fair Credit Reporting Act and a method to request a copy of their background report.

The lead plaintiff in the case claims that Chipotle’s application did in fact include a disclosure that the company would be conducting a background check, but that the provided disclosure was included amongst other extraneous language – a violation under the FCRA.

“Under the FCRA, it is unlawful to procure or cause to be procured, a consumer report or investigative consumer report for employment purposes, unless the disclosure is made in a document that consists solely of the disclosure and the consumer has authorized in writing the procurement of the report,” the plaintiff said.

In addition to the buried disclosure, Chipotle also allegedly failed to provide the applicant with a written summary of her rights under the FCRA. Furthermore, the chain is also accused of violating California privacy laws for failing to include a check-box on their application where applicants could indicate that they would wish to receive a copy of their background checks.

This is not the first time the chain has been accused of violating the FCRA. Previously, the company was accused of failing to provide an applicant with a copy of his consumer report prior to making an adverse hiring decision based on the results of information uncovered. You can read more about that case here.

Source: Law360.com, 9/18/2015

Posted: October 9, 2015