On July 7, the United States District Court for the Southern
District of California preliminarily approved a $1.75 million class
action settlement under the Fair Credit Reporting Act involving
Chuck E. Cheese's background check practices. This settlement
serves as another reminder of the risks that employers face in
conducting background checks on prospective employees.
In Ford v. CEC Entertainment, Inc. d/b/a Chuck E.
Cheese, the plaintiffs alleged Chuck E. Cheese violated the
FCRA by informing applicants that a background check would be
obtained through a disclosure form that contained extraneous,
impermissible information. The FCRA requires employers to provide
applicants with a clear and conspicuous disclosure, consisting
solely of the disclosure, that a background check will be obtained.
According to the plaintiffs, Chuck E. Cheese allegedly violated the
FCRA by embedding the disclosure within the employment application,
including a provision in the disclosure
