Uber Attempts To Stamp Out FCRA Background Check Class Action By Compelling Arbitration

On February 6, Uber filed a motion to compel individual arbitration of a class action lawsuit under the Fair Credit Reporting Act related to its alleged background check practices.  If Uber is successful in compelling arbitration, it will provide another example of the value of arbitration agreements in the face of litigation.

In Mohamed v. Uber Technologies, Inc, the plaintiff sued Uber, among other defendants, in a class action lawsuit for alleged violations of the FCRA's background check provisions.  Specifically, the plaintiff claims that Uber violated the FCRA by allegedly ordering a background check without properly disclosing that it would procure a background check and without obtaining the plaintiff's authorization for the background check.  Further, the plaintiff also claims that once Uber obtained the background check, it violated the FCRA's adverse action notice provisions.