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Home Depot accused of running unauthorized background checks

A proposed class-action suit filed in California federal court claims the home improvement retailer included an unlawful liability waiver on its background check authorization forms.

The suit claims the inclusion of the liability waiver violates the federal Fair Credit Reporting Act (FCRA)’s requirement that background check authorization forms consist of a stand-alone disclosure that does not contain any extraneous information as well as the Federal Trade Commission’s “unambiguous regulatory guidance” that advises against the inclusion of such liability waivers.

“The violations of the FCRA were willful,” the complaint says. “Defendant knew that its background check disclosure and authorization forms should not include extraneous information that is prohibited by the FCRA, and acted in deliberate disregard of its obligations and the rights of Plaintiff and other class members.”

The lead plaintiff in the case says that by including the unlawful waiver, Home Depot failed to procure the necessary authorization to procure background checks on prospective employees. The proposed class-action seeks to represent a nationwide class of job applicants who signed background check disclosure form in the last five years.

In 2016, Home Depot paid $3 million to settle a class-action suit that contained similar claims its job applications used disclosure and authorization forms that contained extraneous information.

Source: Law360.com, 8/7/2017

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