Class Action Claims Security Companies Unlawfully Procured Employee Background Reports

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A proposed class action claims a slew of security companies overstepped the Fair Credit Reporting Act (FCRA) by procuring background reports on current, former and prospective employees as part of the hiring process without providing proper disclosures or obtaining authorization to do so.

Named as defendants in the 33-page lawsuit are Point 2 Point Global Security, Inc.; Universal Protection Service, LP; Universal Protection Service, LLC; Allied Universal Security Services; and Allied Universal Security Services, LLC.

The plaintiff alleges that when he applied for employment with the defendants, the disclosure and authorization form he was provided in connection with the companies’ intention to perform a background check was not compliant with the law in that it contained “extraneous and superfluous language” and failed to provide a summary of his rights under the FCRA. Per the case, any company looking to procure a consumer report on a prospective employee as part of a background check must provide a “clear and unambiguous” disclosure of their intentions in a standalone document.

The lawsuit claims the defendants’ inclusion of “extraneous and unlawful information,” such as a liability waiver, caused the disclosure to fail to be “clear and conspicuous” and “clear and accurate” as required under the FCRA.

The suit goes on to allege that the defendants failed to inform the plaintiff and other prospective employees of their right to request a written summary of their rights under the FCRA, including their rights to a “complete and accurate disclosure of the nature and scope of the investigation requested,” to obtain and dispute information in their credit reports, and to obtain credit scores.

According to the lawsuit, the plaintiff and proposed class members have suffered harm as a result of the defendants’ apparent deviation from the requirements of the FCRA.

“As a result of Defendants’ unlawful procurement of credit and background reports by way of their inadequate disclosures and misinformation as set forth above, Plaintiff and class members have been injured, including but not limited to, having their privacy and statutory rights invaded in violation of the FCRA,” the complaint alleges.

Initially filed in Alameda County, California Superior Court, the lawsuit has since been removed to the state’s Northern District Court.

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