Walmart Faces Certified Class Action Lawsuit Over Alleged FCRA Violations

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Walmart Faces Certified Class Action Lawsuit Over Alleged FCRA Violations

Around 5 million people who applied for a job at Walmart, Inc are now eligible to pursue a class action lawsuit. The plaintiffs are alleging that the company violated the Fair Credit Reporting Act (FCRA) by adding extraneous material to background check notices issued to its applicants. On January 17, 2019, Judge David O. Carter of the U.S. District Court – Central District of California granted a motion for class certification, which will allow for affected plaintiffs to seek monetary reparations. CRC will be monitoring this case and will post updates once they’re received.

This case demonstrates how important it is for organizations to be aware of FCRA requirements and illustrates the costly monetary repercussions that can arise if the law is not followed. In this instance, the plaintiffs are alleging that Walmart’s disclosure and authorization form contained extraneous material that violates the FCRA’s requirement for this form to be clear and conspicuous. The Federal Trade Commission (FTC) offers examples of what shouldn’t be included on the disclosure form such as a release of liability, a certification from the employee that the information is accurate, a requirement for the employee to acknowledge the company’s decisions are non-discriminatory, and authorizations that permit the release of information that the FCRA doesn’t allow to be included with a background report.

Have you reviewed your policies lately to ensure you’re in compliance? CRC offers free compliance resources to our customers, so please reach out to us if you’re unsure if you’re following best practices.