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$3M Kmart Employment Screening Class Action Settlement Reached
By Mike Holter
Kmart has reached a $3 million class action lawsuit settlement over allegations it violated federal credit reporting regulations by failing to notify job applicants if they were rejected because of a failed background check.
More than 64,500 Class Members will be covered by the Kmart background check settlement, which resolves allegations the retailer violated the Fair Credit Reporting Act by not giving them a sufficient chance to dispute negative background reports.
The FCRA requires employers to notify applicants if they plan to take an “adverse action,” such as denying employment, based on a credit report or criminal background check. Kmart, however, allegedly rejected job applicants before alerting them of red-flagged reports, according to the class action lawsuit.
“Defendants knew or should have known about their legal obligations under the FCRA. These obligations are well-established in the plain language of the FCRA and in the promulgations of the Federal Trade Commission,” the Kmart class action lawsuit said.
Kmart and parent company Sears Holding Corp. deny any wrongdoing but agreed to the $3 million class action lawsuit settlement to resolve the litigation.
Details on how to file a claim for the Kmart Employment Screening Class Action Lawsuit Settlement were not immediately available.
The case is Pitt v. K-Mart Corp., Case No. 11-cv-00697, U.S. District Court for the Eastern District of Virginia.
The class is represented by Christopher Colt North and William Leonard Downing of The Consumer and Employee Rights Law Firm PC and by Leonard Anthony Bennett and Susan Mary Rotkis of Consumer Litigation Associates.
Updated January 29th, 2013
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7 thoughts on$3M Kmart Employment Screening Class Action Settlement Reached
In all reality I will end up with 38dollars.. lol Not even worth it..
LMAO at Angela, I think Victoria needs to put the bottle down before she types..
Uhm @ Victoria Miller. It looks like you didn’t get the job due to your poor writing skills. You have submitted two entries and both of them have numerous errors. Stop trying to surf the class action site all day and work on that grammar.
I wished. I would’ve. Known. About this long ago, Due to I really want to work for the company, since I do shop there a lot.
I wished. I would have known. About. This a long time ago, beings. I filled. Out applications. For Kmart a couple of times, and not offered. A job as I felt was due to background check and other.
Please 3 million to this company is like .30cents to us..
Hit them with $300 bilion
To whom this may concern:
They should be back in court for fraud….I recently ordered an online layaway (before Christmas) and as I made my last payment we recieved an E-mail shortly thereafter saying that everything we ordered was out of stock and then, of course the rif-raf of bullcrap started with trying to get back my money…bottom line, they wanted me to fax a copy of my banking records showing that I didn’t receive a refund after weeks of going back and forth…Out of curiousity went to there little Facebook page and wow, 9 out of 10 comments were of the same exact complaints that I face with all the same runarounds… Can you imagine the interest of the money for a month or two they get from everyone who orders online… Just wanted to comment on that…Consumer Fraud was the first thing that come to my mind….would love to be in on a suit like this…or maybe try it yourself and see what I mean..? Thank You for your time and consideration…Larry Brightman