Coffee, Tea…and a Class Action Lawsuit

A class action lawsuit was recently filed in Colorado against Starbucks, claiming that an individual was denied a job based on an allegedly inaccurate background check. The plaintiff is suing Starbucks for violating the Fair Credit Reporting Act. 

In the lawsuit, the plaintiff claims that Starbucks did not give him the opportunity to correct any inaccuracies found on the background check, and violated the required provision of the FCRA. 

Under the FCRA, an applicant has the right to dispute the findings on a background check if denied employment based on the information returned by the CRA.  This is referred to as the Pre-Adverse Action Notice, which provides an applicant a reasonable amount of time to dispute the findings.  If disputed, the CRA must re-open the background check, look for any additional identifiers, and determine whether the information provided was indeed inaccurate or if it belongs to the applicant based on additional information found in the case file.  These steps must be taken before any Adverse Action is taken to deny employment based on the background check.

Unfortunately, the type of situation listed above is not unheard of, and incidences like this continue to pop up around the country due to in-adherence to the FCRA’s policies surrounding hiring and denial of employment. It is imperative that HR personnel understand these steps before refusing employment or rescinding an offer of employment. Failure to do so may result in the same type of lawsuit being filed against a business as Starbucks is being faced with currently.

For more information on this class action lawsuit, click here.