Home Improvement Retailer Accused of FCRA Violations
Tags : FCRA Compliance
On February 3, 2022 a class action suit was filed against Lowe's Companies, Inc. (Lowe's), alleging the company improperly used the content of consumer reports in making employment decisions
Lowe's faces a proposed class action lawsuit claiming the company violated the Fair Credit Reporting Act (FCRA) when it unlawfully used job applicants' consumer reports to make adverse employment decisions without first providing subjects a copy of the report.
Plaintiff Anthony Hale applied for a position at Lowe's Hillsborough County Florida store as a sales specialist in March, 2020. Hale states he was offered the job contingent on the results of a background check. In April, 2020, Hale was informed via text that he did not pass the background check. The complaint indicates that Hale responded to the employer, requesting a copy of the report.
Hale claims that he was never supplied with a copy of the report by either Lowe's or the applicable consumer reporting agency. Hale further contends that, had Lowe's provided him with a copy of his consumer report and the opportunity to discuss its contents, he would have been able to explain that he had no felony convictions, contrary to what was included in the report.
"Plaintiff was never given an opportunity to explain anything to Defendant prior to his abrupt termination," the complaint states. "Defendant's termination of Plaintiff's employment caused Plaintiff damages in the form of lost pay, and emotional damages due to stress caused by the loss of a job he should certainly have retained."
The class includes all U.S. individuals who were the subject of a consumer report as ordered by Lowe's in the last five years. Additionally, qualifying individuals must have been logged in Lowe's system under a code indicating that the individual was ineligible for hire/continued employment and not supplied with either a copy of the report or a written summary of their FCRA rights at least five business days before the code was entered.
Employers are encouraged to review internal workflows on the dissemination of consumer reports and FCRA rights to denied applicants to ensure delivery occurs within proper timeframes and via appropriate channels.
Posted: February 17, 2022
All Rights Reserved © 2022 Certiphi Screening, Inc.
This document and/or presentation is provided as a service to our customers. Its contents are designed solely for informational purposes, and should not be inferred or understood as legal advice or binding case law, nor shared with any third parties. Persons in need of legal assistance should seek the advice of competent legal counsel. Although care has been taken in preparation of these materials, we cannot guarantee the accuracy, currency or completeness of the information contained within it. Anyone using this information does so at his or her own risk.
Everyone I have contacted at Certiphi has been a complete pleasure to work with. The Certiphi customer service rivals every other customer service I come in contact with. Everyone is always so professional, yet super nice! Thanks for all you do and keep up the amazing work and impeccable service that you provide!!!
Thank you so much! You have such an incredible reputation within our office; I think we would all say your customer service levels are continually at about 125%!
The response time has been very quick. The turnaround times are great. I love your systems and that I can go in and look at the process as its going.
It’s such a great customer service that you provide and I’m happy to tell that to anyone.
Working with Certiphi has been such a pleasure. Certiphi has taught me so much, not just about backgrounds but also the meaning of great business.
We flew through our NCQA licensure review. We very much appreciate Certiphi's help in earning a 100% score for the files!