Karina Basso  |  December 10, 2014

Category: Labor & Employment

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Michaels class action lawsuitOn Dec. 4, a background check class action lawsuit was filed against Michaels Stores Inc., alleging the craft supply retailer neglected to properly inform job applicants that the company regularly performed background checks on potential employees during the application process. Without proper disclosure of the background check procedure, Michaels allegedly violated both state and federal consumer protection laws.

Plaintiff Christina Graham, a resident of New Jersey, filed this Michaels class action lawsuit alleging the retailer did not disclose to her and other job applicants that the company runs background checks—criminal records and consumer reports—as a standard part of the Michaels employment screening process.

According to the background check class action lawsuit, the only indication Michaels job applicants are given regarding the background check is a disclosure statement tacked on to the end of written and online Michaels job applications, buried underneath various other pieces of extraneous information.

By not clearly and properly displaying the background check disclosure agreement, Graham alleges Michaels violated the federal Fair Credit Reporting Act and the New Jersey Fair Credit Reporting Act, which require “that before procuring a consumer report for employment purposes a prospective employer must disclose that the employer may procure a consumer report for employment purposes in a document that ‘consists solely of the disclosure,’” according to the Michaels background check class action lawsuit. In absence of this stand-along disclosure, Michaels allegedly did not fully comply with FCRA and NJFCRA statutes.

Graham further claims that the Michaels background check disclosure agreement was included on the same page as the several blank spaces where a job applicant may record his or her previous work experience, 10 notices of state laws concerning conviction record protection, and various other statements.

Based on claims brought forth in the Michaels background check class action lawsuit:

“Defendant’s conduct unambiguously violates the FCRA and NJFCRA. First, it is evident that a stand-alone disclosure cannot be part of a larger job application, but must be an entirely separate document. Second, it is evident that a stand-alone disclosure cannot contain anything other than the disclosure and an authorization for a consumer report to be procured.”

In May of this year, a month before Graham applied to work at Michaels, the craft supply retailer was reportedly informed by General Information Services Inc., a third party consumer reporting agency, that the background disclosure agreement could not be included in the employment application form. The background check class action lawsuit alleges that Michaels told GIS that they would comply with state and federal stand-alone disclosure provisions, but did not do so by the time Graham had applied for employment.

Graham seeks to represent herself in this Michaels class action lawsuit, as well as two proposed Classes. The first proposed Class would include, “All individuals who applied to Michaels through an online application and on whom Michaels procured a background check for employment purposes in the period beginning two years prior to the filing of the Complaint and continuing through the date the class list is prepared.”

The second proposed Class would include New Jersey Class Members who applied for employment at Michaels and had a background check run on them by the company during a six-year Class Period before the filing of this background check class action lawsuit.

Graham is seeking an award of damages estimated at about $100 and $1000 for each FCRA and NJFCRA violation for Class Members of both proposed Classes.

The plaintiffs are represented by Patricia A. Barasch of Schall & Barasch LLC, E. Michelle Drake and Joseph C. Hashmall of Nichols Kaster PLLP and Jeffrey M. Gottlieb and Dana L. Gottlieb of Gottlieb & Associates.

The Michaels Background Check Class Action Lawsuit is Graham v. Michaels Stores Inc., Case No. 2:14-cv-07563, in the U.S. District Court for the District of New Jersey.

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7 thoughts onMichaels Hit with Background Check Class Action Lawsuit

  1. Diana says:

    I am looking for an attorney who can handle something similar to this period I had a real estate agent who is a friend of an ex boyfriend run my credit finances that my consent. I’m in Dallas Texas and I would love to find an attorney to help me further this

  2. Elizabeth Boles says:

    I worked for three Michael’s stores at once for 7 years. Greensboro NC. I haven’t received anything about this. My friend whom I got a job for teaching there has received a check. How do I get mine. He only worked about a year. Please reply.

  3. Tia Todd says:

    I worked at michaels in 2014-2015 and management always had the people like myself that just started do everything for them. While management sat on their butt on their cellphone and flirt with another employee I busted my ass and they had the audacity to tell me I wasn’t doing my job right. It worked me so much, because I would have to call for back up several times because my line would be out the door and it would take management 20 mins to even notice I was saying their name. They huffed and puffed all the time. No doubt worst job I ever worked for

  4. Jennifer says:

    I had a terrible experience as well in 2015-2016 White Marsh MD. Very poor and unprofessional management. I had my store manager frown upon me for going to my uncles funeral. He actually asked me if I could come in for a little while. I couldn’t believe it. They are also very unorganized. My store manager use to get my availability mixed up all the time and then blame me when it was wrong. First, I had to write my availability, then I had to change it in the computer, then he had me texting my availability to him (I had a second job and they gave me my schedule 3 weeks in advance). They also pay the bare minimum and do not treat cashiers well at all. No tention mats behind the register and in order to operate the register, it is required for one to squat because the cash drawer is so low. Talk about a neck and back cramp. Do not work here.

  5. Barry Clompus says:

    I have worked a couple of times at different Michael’s stores.

    I didn’t think they could all be that bad, but now, I think they can.

    They will tell you on a Friday night that you need to come in the next morning,

    and they don’t care if you were going to a wedding. Their disorganization

    falls to you to fix things.

    Favoritism is an art form. One person can take a smoke break for half an hour,

    not ten minutes, and when they return, everything is fine. If you need ten minutes it is denied.

    The worst thing is, you may be working what is supposed to be a six hour shift

    But after two hours they may count all of the drawers and see if the store has made what they should. if not, they will take people off the shift and send you home early.
    And that is with no ability to make up the hours lost.

    You may be a “full time employee” but, that doesn’t mean you will get to work any where near forty hours

  6. Bryana Davis says:

    I was fired after 4 years for going next door while I was MOD (which all of the managers did) to secure sanitary items. I’d just had a baby and had been recently told I needed a hysterectomy. I started bleeding and had no one to relieve me so I went next door. Apparently there was an issue while I was gone those 5-10 minutes and no one could find me. Statements were taken and of course said yes I know she left but didn’t know where… and I was fired. Before he point system was abolished I had my DM pull me in the office threatening to fire me over points I acquired from leaving early or calling out when I went into premature labor like 4 times before my baby finally came 3 months early. He told me he had heard every excuse in the book before.

  7. Rob Inec says:

    MICHAEL’S IS A VERY CORRUPT COMPANY. I KNOW OF SOMEONE WHO FILED A LAWSUIT AGAINST THEM FOR TIME CARD FALSIFICATION AND WRONGFUL TERMINATION. THEY HAVE A REPUTATION FOR TREATING THEIR EMPLOYEES VERY POORLY. UNFORTUNATELY, THEY ALSO HAVE A TEAM OF VERY POWERFUL ATTORNEYS (WHOM THEY NEED BECAUSE OF ALL THE LAWSUITS FILED AGAINST THEM), WHICH MAKES THEM VERY DIFFICULT TO FIGHT. YOU CAN PROTEST MICHAEL’S BY NOT BUYING AT THEIR STORES. JOANN’S FABRICS, HOBBY LOBBY OR BEVERLY’S ARE GREAT ALTERNATIVES. I WILL KEEP SENDING THESE TYPES OF MESSAGES AS LONG AS MICHAEL’S CONTINUES TO BE IN BUSINESS. PLEASE PASS THIS MESSAGE ON. THANK YOU.

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