Wyndham accused of “systemic” violations of background check law
Tags : FCRA Compliance
A new class-action suit claims Wyndham Vacation Ownership, Inc. failed to provide applicants and employees with copies of background check reports prior to taking adverse action against them.
According to the complaint, the lead plaintiff in the case was terminated from his job with Wyndham after the hospitality company procured a background report from a third-party consumer reporting agency. While Wyndham did provide the plaintiff with a copy of his report after the fact, it failed to provide him with an opportunity to dispute or explain the findings of the report – a practice which violates provisions of the federal Fair Credit Reporting Act.
Under the FCRA, employers must provide a copy of any consumer reports to the affected person before an employer can use the information to make an adverse employment-related decision and must also provide the affected person with a summary of their rights under the FCRA, including the name of the company that produced the consumer report and a statement that the consumer reserves the right to dispute any of the report’s findings.
Regulatory guidance also reminds employers that they “must comply with this provision even where the information contained in the report (such as a criminal record) would automatically disqualify the individual from employment or lead to an adverse employment action.”
The complaint states that Wyndham “willfully violated [FCRA] requirements in systemic violation” of applicants’ and employees’ rights when it used the consumer reports to making adverse hiring decisions without first providing them with copies of the reports results.
The class action seeks to cover all Wyndham Vacation Ownership, Inc. applicants and employees in the U.S. who Wyndham used information from a consumer report to make adverse hiring decisions and were not provided with the FCRA’s requisite pre-adverse notification.
The case is Ismael-Ernesto Romero-Perez v. Wyndham Vacation Ownership Inc., Case No. 6:16-cv-01795, in the U.S. District Court for the Middle District of Florida, Orlando Division.
Source: Top Class Actions, 10/24/2016
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