Courier Service Settles Background Check Lawsuit for $2.5 Million Over Alleged FCRA Violations

FCRAFTCGavel

Written By ESR News Blog Editor Thomas Ahearn

Applicants who applied for job with Postmates – a  logistics company that operates a network of couriers who deliver goods locally – may be entitled to payment from a $2.5 million class action lawsuit settlement fund over claims the company’s background check process allegedly violated the federal Fair Credit Reporting Act (FCRA), according to a news report on the Top Class Actions website.

Top Class Actions reports the plaintiffs in the case – Loretta Nesbitt, Jamal St. Louis, and Arian Nunez – claim Postmates violated the FCRA by not providing them with a stand-alone disclosure before requesting the background check reports, and by not providing them with a copy of the background check results and a notice of their rights before taking adverse action against them.

Postmates will create a $2.5 million settlement fund to be distributed to eligible Class Members who will include all people who signed up to work as a Postmates courier and were subjected to an employment background check between July 31, 2013 and May 1, 2016. Postmates denies the allegations of the plaintiffs but agreed to the settlement to avoid further litigation.

The name of the lawsuit is Nesbitt, et al. v. Postmates Inc., Case No. CGC15547146, filed in the Superior Court of the State of California County of San Francisco. The complete report from Top Class Actions is available at: https://topclassactions.com/lawsuit-settlements/lawsuit-news/816387-postmates-courier-background-check-class-action-settlement/.

Enacted in 1970, the FCRA (15 U.S.C. § 1681) promotes the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies (CRAs) – the technical term for background check firms – and was intended to protect consumers from the willful and/or negligent inclusion of inaccurate information in their credit reports.

Employment Screening Resources® (ESR) has released a whitepaper written by ESR Founder and CEO Attorney Lester Rosen titled “Common Ways Prospective or Current Employees Sue Employers Under the FCRA” in response to the rising trend of class action lawsuits filed for alleged violations of FCRA that controls background checks in the U.S.

Rosen – author of “The Safe Hiring Manual” – explains how class action lawsuits can be avoided: More often than not, employers are sued for violating FCRA 101—simple rules and procedures that are clearly set out in the law. The complimentary whitepaper is available at: www.esrcheck.com/Whitepapers/Ways-Employees-Sue-Employers-Under-FCRA/.

More News about Background Check Lawsuits from ESR

Employment Screening Resources® (ESR) – a leading global background check firm – has an extensive library of blogs about class action lawsuits for alleged violations of the FCRA by an employer’s applicant background check process. For more ESR News blogs about background check lawsuits, visit: http://www.esrcheck.com/wordpress/tag/class-action-lawsuits/.

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.

© 2017 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.