Retail Giant Walmart Faces Class Action Lawsuit for Alleged FCRA Violations with Background Checks

Written By ESR News Blog Editor Thomas Ahearn

Walmart faces a class action lawsuit that claims the retail giant allegedly violated the federal Fair Credit Reporting Act (FCRA) and California law by using unauthorized background checks on job applicants and employees without properly obtaining legal authorization, according to a Top Class Actions report.

Top Class Actions reports that lead plaintiff Randy Pitre claims Walmart obtained a background check on him without legal authorization under the FCRA, and argues that the company “failed to provide adequate notice of the consumer report as well as failed to secure legal authorization to obtain it.”

Walmart has “a policy and practice of procuring investigative consumer reports or causing investigative consumer reports to be procured for applicants and employees without properly and legally obtaining authorization as it included other extraneous information other than the disclosure,” the lawsuit states.

Top Class Actions reports that the class action lawsuit claims that Walmart also failed to notify for applicants and employees of “their right to request a summary of their rights under the FCRA at the same time as the disclosure explaining that an investigative consumer report may be made.”

Pitre claims Walmart violated the FCRA by not providing a “clear and conspicuous” disclosure notifying job seekers about the background checks, and that the background check disclosures were “embedded with extraneous information” and “not clear and unambiguous disclosures in stand-alone documents.”

Under the FCRA, it is unlawful to procure or caused to be procured, a consumer report or investigative consumer report for employment purposes unless the disclosure is made in a document that consists solely of the disclosure and the consumer has authorized, in writing, the procurement of the report.

Top Class Actions reports “the plaintiff seeks to represent a nationwide Class of current, former, and prospective job applicants with Walmart who were subject to an unauthorized background check within the past five years. Pitre also seeks to represent a California subclass for alleged violations of state law.”

The lawsuit is Randy Pitre v. Wal-Mart Stores Inc., Case No. 8:17-cv-01281-DOC-DFM, in the U.S. District Court for the Central District of California. The complete story is at: https://topclassactions.com/lawsuit-settlements/lawsuit-news/815025-walmart-class-action-says-background-checks-violate-federal-law/.

NOTE: Employment Screening Resources® (ESR) reminds readers that allegations alone made in class action lawsuits are not proof that a business violated any law, rule, or regulation.

ESR Whitepaper Examines FCRA Lawsuits

Employment Screening Resources® (ESR) founder and CEO Attorney Lester Rosen has written a whitepaper entitled “Common Ways Prospective or Current Employees Sue Employers Under the FCRA” that is available at www.esrcheck.com/Whitepapers/Ways-Employees-Sue-Employers-Under-FCRA/.

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.

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