Court Approves $1.375 Million FCRA Class Action Lawsuit Settlement

Fair Credit Reporting Act (FCRA)

Written By ESR News Blog Editor Thomas Ahearn

On May 3, 2021, a California federal court approved a settlement of $1.375 million in the class action lawsuit BAILEY and CARRASCO JR. v. ROMANOFF FLOOR COVERING, INC. where the Plaintiffs claimed the Defendant violated the Fair Credit Reporting Act (FCRA) by misusing consent forms to improperly run background checks.

The settlement is also for wage and hour violations under California law. The California Class includes individuals who worked for Defendant in California from March 30, 2013, to May 1, 2018, while the FCRA Class includes prospective employees for whom Defendant procured a background check from March 30, 2012, to April 5, 2017.

The Order from United States District Judge Troy L. Nunley granting final approval of the settlement in the class action lawsuit BAILEY and CARRASCO JR. v. ROMANOFF FLOOR COVERING, INC. (Case No. 2:17-cv-00685-TLN-DMC) in the United States District Court Eastern District of California is available here.

Enacted by Congress 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) and protects consumers from the willful and/or negligent inclusion of inaccurate information in their consumer reports.

Employment Screening Resources® (ESR) – a leading global background check provider named the number one background screening firm by HRO Today in 2020 – offers white papers on how employers may avoid FCRA lawsuits and how CRAs may avoid FCRA lawsuits. To learn more about ESR, visit www.esrcheck.com.

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