Staffing Company Settles in Class Action Suit Alleging FCRA Violations

A staffing company was accused by a group of workers of utilizing non-compliant consent forms during the application process.

U.S. District Judge Larry Alan Burns preliminarily approved a $2.75 million settlement between the two parties in California federal court. This monetary settlement reflects a settlement for both alleged Fair Credit Reporting Act (FCRA) and wage law violations.

Filed in September, 2020 as a first amended complaint, the lead plaintiffs claimed that the staffing company violated the Fair Credit Reporting Act (FCRA) by distributing forms that were not compliant with the act. According to settlement records, the nationwide FCRA Class is comprised of over 7,000 people.

The case was initiated as separate filings - a class action and a Private Attorneys General Act action - in California state court. Both were later transitioned to federal court and consolidated.

"Continued litigation would have been expensive for both sides," Judge Burns said. "The parties acknowledge that litigating and trying this action may have resulted in delay of any recovery, involved significant risk as to liability and certification, and led to possible appeals."

Employers are encouraged to review consent forms and internal protocols periodically to ensure compliance with FCRA.

Posted: April 9, 2021

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