Domino’s Pizza and Capital One Taking Heat from Alleged FCRA Violations

Law firm Nichols Caster announced last week that former Domino’s Pizza employees will be allowed to proceed with putative class action against the company for alleged background check violations. According to the Nichols Caster press release, the United States District Court denied Defendant Domino’s Pizza’s motion to dismiss the case of Singleton, et al., v. Domino’s Pizza, LLC, ruling that the plaintiffs properly alleged that Domino’s violated the Fair Credit Reporting Act.

The two plaintiffs in the case allege that they were terminated from Domino’s based on undisclosed information in their background checks that was never shared with them by the company.

Domino’s alleged FCRA violations include:

(1)running background checks on employees without proper authorization; and

(2) “systematically” failing to provide employees with copies of their background checks prior to taking adverse employment action against them.

The Court went so far as to rule that the plaintiffs properly alleged that Domino’s violations were “willful.” According to the Court, “Domino’s fail[ed] to show that its interpretation of [FCRA] was ‘not objectively unreasonable.’”

Nichols Caster recently initiated a similar case against Capital One for FCRA violations. In this case, the lawsuit alleges that Capital One’s authorization form is flawed and that Capital One failed to provide copies of the background reports when it used them to take adverse employment actions.

How Can You Avoid FCRA Violations?

When you use consumer reports to make employment decisions, including hiring, retention, promotion or reassignment, you must comply with the Fair Credit Reporting Act (FCRA). The FCRA is enforced by the Federal Trade Association and applies to companies who use third party consumer reporting agencies (background screening companies) to perform their employment background checks.

There are FCRA requirements that must be followed before you get a background check, before you take an adverse action, and after you take an adverse action.

Learn more about these requirements in our recent blog post, “Following FCRA Regulations is Smart for Employers.”

We encourage all employers to carefully review their employment screening policies and programs to ensure their ongoing compliance with the FCRA. Consult both your employment attorney and your background screening company. At Proforma, we offer FCRA compliance support to assist in your ongoing compliance.

We are happy to discuss your employment screening program. Request a free initial consultation today.

About Michael Gaul

A security industry professional since 1988, Michael has extensive expertise in the fields of human capital risk management, physical security, and background screening process management. Michael leads Proforma’s sales, marketing, and strategic customer relations efforts.


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