Staffing Company Settles FCRA Class Action Lawsuit

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Written By ESR News Blog Editor Thomas Ahearn

A staffing company has agreed to settle a class action lawsuit that claims the firm allegedly violated the federal Fair Credit Reporting Act (FCRA) when obtaining background checks on job applicants, according to a TopClassActions.com report.

TopClassActions reports the lead Plaintiff, John Giddiens, claimed Infinity Staffing Solutions LLC (d/b/a Lyneer Staffing Solutions) allegedly violated the FCRA by including a release and waiver of rights in the consent and disclosure form applicants signed before submitting to a background check.

Under the FCRA, the disclosure form must be made in a separate “stand alone” document used for the sole purpose of disclosure and not “encumbered by any other information … in order to prevent consumers from being distracted by other information side-by-side with the disclosure.”

The plaintiff also claimed the staffing company did not properly make adverse employment decisions based on the background checks since they did not provide job applicants with a copy of the background check report and a summary of their rights under the FCRA, TopClassActions reports.

The FCRA requires any employer taking an “adverse action” against a job applicant based on any information in a background check report to provide a “pre-adverse action” notice to the applicant that includes a copy of the report and the notice “A Summary of Your Rights Under the FCRA”.

Individuals who underwent a background check with Infinity Staffing Solutions LLC (d/b/a Lyneer Staffing Solutions) using a form titled ‘Authorization for Release of Information’ from December 6, 2011 to August 21, 2015 may be entitled to receive $110 or $1,000 from the settlement, TopClassActions reports.

The defendants deny any wrongdoing but agreed to settle the case to avoid the distraction, risk, and expense of litigation, according to the article at http://topclassactions.com/lawsuit-settlements/open-lawsuit-settlements/203308-infinity-staffing-background-check-class-action-settlement/.

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As reported earlier by ESR News, the dangers of lawsuits against employers for the actions of their staffing vendors may have increased with the August 27, 2015 decision by the National Labor Relations Board (NLRB) in a case where the definition of a “joint” employer was expanded.

In the decision, the NLRB found that two or more entities are joint employers of a single workforce if (1) they are both employers within the meaning of the common law, and (2) they share or codetermine those matters governing the essential terms and conditions of employment.

“It is more important than ever that employers understand what their staffing vendors are doing since the new joint employer standard can potentially open up more employer liability for acts of staffing firms,” says Attorney Lester Rosen, founder and CEO of Employment Screening Resources (ESR).

“Where employers rely up the services of third party staffing vendors, it is also important to ensure that all Fair Credit Reporting Act processes are being followed by the vendor,” adds Rosen, the author of ‘The Safe Hiring Manual,’ a comprehensive guide to background checks for employment.

Employment Screening Resources (ESR) provides background check services that help staffing agencies find the right candidate by eliminating unqualified workers and screening out potentially dangerous applicants. For more information about ESR, call 888.999.4474 or visit http://www.esrcheck.com.

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