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Popular courier service to pay $2.5M to settle background check class action

Postmates, an on-demand delivery service, agreed to the deal to settle allegations that the company’s background check procedures failed to comply with Fair Credit Reporting Act.

The deal will put to rest a proposed class action which claimed that Postmates hid its background check disclosure within a 10-page legal document containing extraneous information – a practice which would violate the FCRA’s “stand alone disclosure” requirement. Furthermore, the suit claimed that Postmates failed to provide applicants they elected not to hire with the necessary adverse action notices as well as copies of their completed background checks.

The deal will certify roughly 174,000 class members consisting of users who signed up with Postmates to be couriers and a separate 16,000-member class of couriers who Postmates failed to provide with copies of their background check reports after they were no longer being considered for the position, according to Law360.com

Since the filing of the lawsuit Postmates modified its disclosure practice to fall in line with the requirements of the FCRA.

The case is Lorretta Nesbitt v. Postmates Inc., case number CGC15547146, in the Superior Court of the State of California County of San Francisco.

Source: Law360.com, 6/29/2017

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