INDUSTRY NEWS
Class-action suit claims hotel company’s background checks ran afoul of FCRA
Naples Hotel Group LLC allegedly used background check authorization forms that contained “extraneous provisions,” in violation of the Fair Credit Reporting Act, according to the suit.
The FCRA requires companies who procure background checks for employment to make a clear and conspicuous disclosure in writing, “in a document that consists solely of the disclosure.”
The plaintiffs claim Naples knowingly failed to make the proper disclosures and obtain the proper authorizations required under the FCRA. Additionally, the suit claims the company further violated the FCRA when it took adverse action against the plaintiffs.
“Without clear notice that a consumer report is going to be procured, applicants and employees are deprived of the opportunity to make informed decisions or otherwise assert protected rights,” according to the complaint.
The case is Williams et al. v. Naples Hotel Group LLC, case number 6:18-cv-00422, in the U.S. District Court for the Middle District of Florida.
Source: Law360.com, 3/22/2018