Written By Digital Content Editor Thomas Ahearn
A Florida-based cannabis dispensary that sells marijuana products has agreed to pay $60,500 to resolve a class action lawsuit that claimed the company allegedly violated the federal Fair Credit Reporting Act (FCRA) with unlawful background checks, according to a report on the Top Class Actions website.
Top Class Actions reports that the settlement benefits the approximately 1,000 eligible applicants and employees who suffered from adverse employment action as a result of a background check obtained since September 17, 2017, who were not provided notice, a summary, or a copy of the report.
According to the class action lawsuit, the cannabis company violated the FCRA with its background check policies by allegedly taking adverse employment action against applicants and employees without providing these individuals with notices, summaries of their reports, or copies of their reports.
Top Class Actions reports that the cannabis company has not admitted any wrongdoing under the FCRA but agreed to pay $60,500 to resolve these claims. The final approval hearing for the class action lawsuit settlement is scheduled for August 18, 2022. The complete news report is available here.
The FCRA was enacted by Congress in 1970 to promote the accuracy, fairness, and privacy of consumer information contained in the files of Consumer Reporting Agencies (CRAs) and to protect consumers from the willful and/or negligent inclusion of inaccurate information in their consumer reports.
Employment Screening Resources® (ESR) is a service offering of ClearStar, a leading Human Resource (HR) technology company specializing in background, drug, and health screening for employment. ESR offers FCRA-compliant background screening services for employers. To learn more, contact ESR today.
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