Uber to Pay $7.5 Million to Settle Lawsuit Over Driver Background Checks

GavelBackgroundCheckLawsuits

Written By ESR News Blog Editor Thomas Ahearn

Uber Technologies Inc. has agreed to pay $7.5 million to settle a lawsuit that claimed the online transportation network company terminated drivers after obtaining driver background checks about them without their authorization, according to a Reuters report from Reuters.

Reuters reports that lawyers representing a group of drivers in the lawsuit against Uber have filed a memorandum of understanding in San Francisco federal court and are in the process of drafting a formal settlement that must be approved by a San Francisco federal court judge.

Reuters also reports that an attorney for the drivers could not immediately be reached for comment while an Uber spokesman declined to comment. The complete story from Reuters is available at http://www.reuters.com/article/us-uber-lawsuit-idUSKCN0Z12GS.

Under the Fair Credit Reporting Act (FCRA), a federal law that regulates background checks in the U.S., employers using third-party background check firms are required to give prior notice and disclosure to, and receive written consent from, subjects of background checks.

As reported earlier on the ESR News Blog, Uber has faced several lawsuits in 2016 that involve violent crimes such as rape and assault allegedly committed by Uber drivers or the questioning of the strength and effectiveness of the company’s driver background checks.

In May 2016, ESR News reported that a San Francisco federal judge ruled two women could continue their lawsuit against Uber for two alleged sexual assaults committed by Uber drivers even though Uber claimed they are not liable since their drivers are independent contractors.

In April 2016, ESR News reported that Uber agreed pay $10 million to settle lawsuits filed by district attorneys in San Francisco and Los Angeles that claimed the company misled passengers about the quality of driver background checks, a figure that could rise to $25 million.

In February 2016, Employment Screening Resources (ESR) president Brad Landin wrote an opinion piece about Uber background checks that was posted on CNN.com after the shooting deaths of six people in Kalamazoo, Michigan where the alleged gunman worked as an Uber driver.

NOTE: Employment Screening Resources® (ESR) does not provide or offer legal services or legal advice of any kind or nature. Any information on this website is for educational purposes only.

© 2016 Employment Screening Resources® (ESR) – Making copies or using of any part of the ESR News Blog or ESR website for any purpose other than your own personal use is prohibited unless written authorization is first obtained from ESR.