Key Issues in the Checkr Class Action Lawsuit:
Several key allegations have been raised in the checkr class action lawsuit, with the following allegations being particularly focused upon:
1. Inaccurate Reporting: The plaintiffs argue that Checkr has been reporting inaccurate or incomplete information regarding consumer background checks to employers, resulting in adverse employment decisions against job applicants.
2. Lack of Consent: The FCRA mandates that employers obtain written consent from job applicants prior to conducting a background check. Plaintiffs allege that Checkr failed to ensure that employers obtained proper consent before ordering background screenings.
3. Failure to Provide Adverse Action Notices: The FCRA mandates that employers must provide applicants with a copy of their background check report and a summary of their rights before the employer considers the report's findings as the basis for taking any adverse employment actions. Plaintiffs allege that Checkr did not ensure that employers provided applicants with these prerequisite notifications.
Consumer Consequences: The Checkr class action lawsuit has far-reaching implications for consumers who have undergone background checks by the company. If the allegations against Checkr are proven true, then affected individuals may be entitled to damages for rights violations under the FCRA and other relevant statutes. Additionally, if successful, a verdict in the Checkr case may push increased scrutiny of the industry and, more likely than not, invigorate enforcement actions, resulting in better industry practices and much higher compliance standards.
Impact on Consumer Rights and Protection: Hence, from the ongoing litigation, consumers must indeed be aware that there are rights in place against wrongdoing employers who conduct background checks on them. Individual education with regard to the rights under the FCRA, dispute with erroneous information, and the right to see a copy of one's consumer report are some of the rights that an individual should understand as a consumer.