Home Depot Settles FCRA Lawsuit for $1.8 Million

Written By ESR News Blog Editor Thomas Ahearn

A settlement of $1.8 million has been reached in a class action lawsuit against Home Depot that claimed the home improvement and construction retailer allegedly violated the federal Fair Credit Reporting Act (FCRA) by not having the proper forms for job applicants to fill out in order to conduct background checks on them, according to a report on the Top Class Actions website.

Top Class Actions reports the lead plaintiff, Irene Fernandez, claimed in the class action lawsuit that when she applied for a job with Home Depot she signed background check authorization forms with more than the required disclosure when “the form may not include any extraneous information, such as a release of liability for the employer; any release must be separate from the disclosure.”

The class action lawsuit claimed Home Depot “violated the FCRA by including releases of liability in their preauthorization background and/or credit check disclosure forms.” Proposed Class Members include approximately 120,000 individuals who applied for jobs with Home Depot using the allegedly illegal background check forms from April 24, 2011 to May 11, 2015, Top Class Actions reports.

The $1.8 million allotted in the settlement agreement with Home Depot only covers 120,000 Class Members receiving $15 without having to file a claim, according to Top Class Actions, while Class Members who do submit a Claim Form by the deadline will receive $35 to $100, with the amount received depending on the number of Class Members who file claims.

The background check class action lawsuit is Fernandez v. Home Depot USA Inc., Case No. 8:13-cv-00648, in the U.S. District Court for the Central District of California. The complete article is available on the Top Class Actions website at http://topclassactions.com/lawsuit-settlements/lawsuit-news/54422-home-depot-reaches-1-8m-class-action-settlement-over-background-checks/.

FCRA Lawsuits Like One Against Home Depot A Growing Trend

Employment Screening Resources® (ESR) identified the growth of FCRA lawsuits as one the ESR Top Ten Background Check Trends for 2015. ESR will present a complimentary webinar hosted by ESR founder and CEO Attorney Lester Rosen titled ‘Common Ways Consumer Reporting Agencies are Sued Under the FCRA’ on Tuesday, May 12, 2015. For more information, click here.

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