
A recent
proposed class action against Whole Foods Market Group, Inc. highlights the
risks of blindly relying on vendor forms or not carefully checking forms that
you create. Earlier this month, a former
Whole Foods employee filed a federal lawsuit in Florida, alleging that the
company violated FCRA, the federal background check law, by using non-compliant
background check consent forms in its online application process.
Under FCRA, an employer that intends to
conduct a background check must first provide the applicant with an advance disclosure
notice and consent form. This form must
be in writing and contain designated information in a stand-alone format,
separate from the employment application.
An employer must also use the form to obtain the individual’s written consent
to the background check. The disclosure
and consent form may not, however, contain any extraneous information, such as
disclaimers, releases of liability, or other acknowledgements.
The recent
suit against Whole Foods alleges that the company impermissibly used a
background check disclosure form that contained extraneous release of liability
language in violation of FCRA. The named
plaintiff, Colin Speer, seeks to represent a nationwide class of Whole Foods
employees or job applicants who were given the incorrect form in the last five
years. The case is Colin Speer v. Whole Foods Group Market Inc., case number 8:14-cv-03035, pending in the U.S. District Court for the Central District of Florida.
This is
not the first time Whole Foods has faced FCRA violation claims. In February 2014, a similar lawsuit was filed
against the company in California. The
Whole Foods lawsuits are part of a growing trend of class action lawsuits
alleging FCRA violations against large national employers. In the last month, Dollar General and Publix
Super Markets Inc. have settled FCRA-related class actions, each for millions
of dollars. In addition, Home Depot,
Uber, Disney, Domino’s Pizza, CVS, and K-Mart, among others, have all been hit
with FCRA-related background screening lawsuits in recent years. As further evidence of this trend, just last
month, the Federal Trade Commission (responsible for enforcement of the FCRA) issued a document called "Background Checks: Tips for Job Applicants and Employers."
Employers should be mindful of this trend and take preventive steps to ensure their application process is
compliant with FCRA and other laws. If
you conduct background checks, make sure the forms that you use are FCRA
compliant and that you have considered any unique state or local laws.
No comments:
Post a Comment