Restaurant and Arcade Chain Faces FCRA Class Action Lawsuit Over Background Checks

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Written By ESR News Blog Editor Thomas Ahearn

A proposed class action lawsuit claims that restaurant and arcade chain Dave & Buster’s allegedly disregarded the federal Fair Credit Reporting Act (FCRA) when conducting background checks for employment purposes on prospective employees, according to a report from TopClassActions.com.

Top Class Actions reports that lead plaintiff Joseph Alvarez claims that two days after he accepted a job as a line cook with Dave & Buster’s in August 2015, the company rescinded the offer based on information in his background check, according to the FCRA class action lawsuit filed in a Florida court.

The class action lawsuit claims Dave & Buster’s did not provide Alvarez with a copy of the background check report or give him any opportunity to review and discuss the report with the potential employer before the job offer was revoked, in violation of the FCRA. According to class action lawsuit:

While the use of consumer report information for employment purposes is not per se unlawful, it is subject to strict disclosure and authorization requirements under the FCRA. Defendant willfully violated these requirements in systemic violation of plaintiff’s rights and the rights of other putative class members.

Enacted in 1970, the FCRA requires employers to provide a copy of a background check report and information about the consumer reporting agency (CRA) preparing the report to subjects of reports, as well as notifying individuals if the results of their reports will have an “adverse effect” on job offers.

Top Class Actions reports that the class action lawsuit involving Dave & Buster’s states: Defendant knew or should have known of its legal obligations under the FCRA. These obligations are well established in the plain language of the statue and in the promulgations of the Federal Trade Commission.

The FCRA class action will be open to all Class Members who were employees and job applicants negatively of Dave & Buster’s impacted by a consumer report within the last five years. The plaintiff is seeking punitive damages as well as statutory damages in the amount of $100 to $1,000 per violation.

The lawsuit is Alvarez v. Dave & Busters Inc., Case No. 6:16-cv-00252, in the U.S. District Court for the Middle District of Florida. The Top Class Actions report is at http://topclassactions.com/lawsuit-settlements/lawsuit-news/328096-dave-busters-faces-class-action-lawsuit-over-background-checks/.

ESR Whitepaper on FCRA Lawsuits

Employment Screening Resources® (ESR) offers a complimentary whitepaper on “Common Ways Prospective or Current Employees Sue Employers Under the FCRA” in response to the rising trend of FCRA class action lawsuits. To download the whitepaper, visit http://www.esrcheck.com/Whitepapers/Ways-Employees-Sue-Employers-Under-FCRA/.

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