Publix to Settle Lawsuit Over Background Checks for $6.8 Million

Background Checks Lawsuits

Written By ESR News Blog Editor Thomas Ahearn

Publix Super Markets Inc. will pay approximately $6.8 million to settle a class action lawsuit that alleges the company violated the federal Fair Credit Reporting Act (FCRA) for not making “legally required disclosures about background checks to job applicants,” according to a report on TheLedger.com available at http://www.theledger.com/article/20141028/NEWS/141029338.

TheLedger.com reports the settlement class that totals 90,633 people who would receive $75 apiece includes applicants who applied for jobs at Publix and underwent background checks during the period from March 12, 2012, to May 13, 2014. Publix was not found liable in court and denied any wrongdoing but agreed to settle due to litigation costs and business disruptions.

TheLedger.com – located in Lakeland, Florida where Publix is based – reports the lead plaintiff in the case applied for a job with Publix in 2013. Although an authorization for background checks was included the Publix job application, the lawsuit claimed it still violated the FCRA requirement of notification to the applicant “in a document consisting solely of the disclosure.”

TheLedger.com reports the lawsuit also claimed Publix job applications included language “that would cause applicants to waive certain legal rights regarding background checks” and that the company has made changes with regard to background checks to job applications. The $6.8 million lawsuit settlement is headed for final approval in Tennessee federal court.

Class Action Lawsuits for Background Checks

Compliance with the federal Fair Credit Reporting Act (FCRA) is mission critical for employers performing background checks for employment purposes. Employment Screening Resources® (ESR) – ‘The Background Check Authority®’ – offers proprietary technology with FCRA and state law compliance built into the software. For more information, call Toll Free 888.999.4474 or visit http://www.esrcheck.com/.

Register for the complimentary webinar “Ban the Box – What Employers Need to Know” hosted by Employment Screening Resources (ESR) Founder and CEO Attorney Lester Rosen on Wednesday, November 12, 2014