Written By ESR News Blog Editor Thomas Ahearn
A class action lawsuit filed against Universal Studios Orlando alleges that the Universal Inc. theme park violated the federal Fair Credit Reporting Act (FCRA) by not properly disclosing to job applicants and current employees that the company used credit reports for employment decisions, according to a story on the TopClassActions.com website.
TopClassAction.com reports that the lead plaintiff in the case, Eufemio Mendez, claims Universal allegedly illegally obtained and used a consumer report in determining not to hire him, and that Universal did not properly disclose its use of credit reports in hiring decisions along with other violations of FCRA. The FCRA class action lawsuit alleges:
Defendant routinely obtains and uses information in consumer reports to conduct background checks on prospective and existing employees, and frequently relies on such information, in whole or in part, as a basis for adverse employment action, such as termination, reduction of hours, change in position, failure to hire, and failure to promote.
The FCRA class action lawsuit also claims Universal did not provide a copy of a disclosure indicating the company would obtain and use a credit report to current and prospective employees. The FCRA requires this disclosure to not be included with other information and given to the applicant before an employer obtains a copy of the credit report.
TopClassAction.com reports the FCRA class action lawsuit also alleges that current and prospective employees were not provided with copies of their consumer reports obtained by Universal. The FCRA allows employees and job applicants to address information contained in consumer reports before an adverse employment action.
The lead plaintiff in the FCRA class action lawsuit seeks to represent two classes: 1.) people who suffered an adverse employment action as a result of the alleged illegal practices within the past five years and 2.) people who were the subject of a consumer report procured by Universal within the past five years.
The case is Mendez v. Universal City Development Partners, Ltd., case number 6:15-cv-01422, in the U.S. District Court for the Middle District of Florida. The complete story is available at http://topclassactions.com/lawsuit-settlements/lawsuit-news/147749-class-action-universal-improperly-runs-credit-reports-applicants/.
Number of FCRA Class Action Lawsuits Rising
The number of class action lawsuits involving the Fair Credit Reporting Act (FCRA) is rising steadily and employers need to be in compliance or else risk being sued. For more information about FCRA compliance, visit Employment Screening Resources® (ESR) – “The Background Check Authority®” – at http://www.esrcheck.com/.
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