In another example of the continuing increase in background
screening-related class actions, a national restaurant chain was on
the receiving end of a class action lawsuit. In the
nationwide class action, filed in the Central District of
California, the plaintiff claims the restaurant violated the Fair
Credit Reporting Act (FCRA) by failing to provide an FCRA-compliant
disclosure form.
The plaintiff alleges that the restaurant's consent and
disclosure form failed to comply with the FCRA requirements because
it included false information provisions, a post-employment
authorization, and employment contract and at-will
provisions. In addition to the noncompliant consent and
disclosure form, the plaintiff also alleges that the restaurant
failed to provide a written summary of rights under the FCRA.
The complaint alleges that the FTC has issued guidance on what can
be included in a consent and disclosure form, and that the
restaurant's failure to follow that guidance
