A popular restaurant and arcade chain is the subject of a proposed class action lawsuit alleging FCRA violations. Dave & Buster’s is accused of failing to provide a copy of a consumer report to a recent hire who subsequently had their job offer rescinded based on information contained in his background check. According to the plaintiff, he was deprived of the opportunity to review and discuss his background check report.
The proposed class action lawsuit alleges that Dave & Buster’s routinely violates the FCRA when it comes to employment screening of new and existing employees. According to the plaintiff, Dave & Buster’s is “subject to strict disclosure and authorization requirements under the FCRA” and the “defendant willfully violated these requirements in systemic violation of plaintiff’s rights and the rights of other putative class members”.
This proposed class action lawsuit is a reminder to employers to review their hiring policies as they relate to background screening. Employers must ensure they follow all FCRA regulations to their fullest extent.
Below is an overview of industry best practices we recommend:
- The Disclosure must be “clear, conspicuous, and in writing”, should be a separate document from the Authorization, and clearly indicate the nature of the background check.
- Obtain applicant’s permission and signature authorizing the background check.
- Before taking any adverse action the employer must provide a pre-adverse action disclosure that includes a copy of the individual’s consumer report and a copy of “A Summary of Your Rights Under the Fair Credit Reporting Act”.
- After taking adverse action you must give the individual notice that you have taken adverse action through a series of disclosures and a copy of “A Summary of Your Rights Under the Fair Credit Reporting Act”.
Here is a link to a story on the subject: Dave & Buster's Faces Class Action Lawsuit over Background Checks