Legislative Alert - July 29, 2015 - Chuck E. Cheese Caught in FCRA Trap

Mouse-trap-ftcChuck E. Cheese will pay nearly $2 million to settle the California based suit that alleges job applicants were not provided the required disclosures about background checks performed during the hiring process.

The Mouse Pays Up

Chuck E. Cheese is the latest to settle a class action lawsuit over alleged FCRA violations. The national restaurant chain will pay $1.75 million to settle the California based suit that alleges job applicants were not provided the required disclosures about background checks performed during the hiring process.

The suit was brought by job applicants who claimed the company didn’t provide a separate, stand-alone disclosure authorization form before conducting pre-employment background checks. The complaint also said the disclosure form didn’t have a box for the applicant to check if they wanted to receive a copy of their report, which is required under California law.   

The 28,500 members of the class will each receive $38—the attorneys take home $557,000.

EEOC Suit Over Sloppy Record Keeping

The Equal Employment Opportunity Commission (EEOC) has filed a lawsuit against Crothall Services Group, Inc. for failing to keep proper records regarding background screening conducted on job applicants.  Based out of Wayne, Pennsylvania, Crothall is a nationwide company that provides janitorial and facilities management services to health care institutions.

According to the complaint, the company uses background checks and criminal history when making employment decisions, but they don’t keep any of the records after a decision has been made. The EEOC says failing to keep the records is a violation of Title VII of the Civil Rights Act of 1964.  Without those records, the Commission cannot identify any disparate impact, should claims arise.

This suit stems from a 2010 EEOC investigation into Crothall’s hiring practices. The company paid $88,000 to settle that case, but the EEOC was concerned that they were not able to produce any documentation when subpoenaed. The Commission now wants the court to order Crothall to maintain such employment records. 

Ban the Box in Daytona

The City of Daytona Beach officially implemented its Fair Chance/Ban the Box Policy on July 1, 2015. Under the policy, job applicants will not be asked about criminal history until after an application review, an interview and drug screening.  At that point the applicant will be asked to disclose any criminal history on separate form. The city hopes this effort with make it easier for qualified people to gain employment even if they have a conviction on their record.

A Best Practice Guide for Selecting a Background Screening Partner

Employment Background Investigations is a technology driven leader in domestic and global pre-employment background checks, drug testing, occupational health screening and I-9 compliance. We specialize in development, implementation and management of customized employment screening programs for large and multi-national clients. We are dedicated to information security.  EBI is the only NAPBS Accredited background screening company in the world to hold both an ISO 27001:2005 certification for information security and an ISO 9001:2008 certification for Quality Management.

All content provided by EBI is published for the convenience of its readers and should never be deemed as legal guidance or advice.  Always consult your legal counsel for specific advice on state laws and industry regulations.

Legislative Alerts, Ban the Box, EEOC & FCRA

Jennifer Gladstone

Posted By: Jennifer Gladstone

Jennifer Gladstone is a news anchor and journalist with more than 20 years of experience in front of the camera. She's worked in several markets, large and small, and has performed nearly every task needed in a newsroom. As EBI’s Screening News Editor, she keeps EBI’s customers and blog subscribers up to date on the latest screening news and legislative alerts affecting companies of all sizes.