Class Action: Universal Improperly Runs Credit Reports on Applicants

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Last week, a class action lawsuit was filed against Universal Studios Orlando alleging that the theme and entertainment operator did not tell current and prospective employees that it was running credit reports in violation of the Fair Credit Reporting Act (FCRA).

Lead plaintiff Eufemio Mendez alleges in his FCRA class action lawsuit that Universal used a consumer report in determining not to hire him, but Universal illegally obtained and used the report. The plaintiff alleges that Universal does not properly disclose its use of credit reports in hiring decisions, in additions to other violations of FCRA.

“Defendant routinely obtains and uses information in consumer reports to conduct background checks on prospective and existing employees, and frequently relies on such information, in whole or in part, as a basis for adverse employment action, such as termination, reduction of hours, change in position, failure to hire, and failure to promote,” Mendez alleges in his FCRA class action lawsuit.

Mendez claims that Universal does not provide to current and prospective employees a copy of a disclosure indicating the company will obtain and use a credit report in the way prescribed by the Fair Credit Reporting Act. According to the FCRA class action lawsuit, this document must only consist of a disclosure that it may obtain a consumer report for employment purposes and this disclosure must not be included with other information. This disclosure must be provided to the applicant before an employer obtains a copy of the credit report.

Additionally, alleges Mendez in the class action lawsuit, current and prospective employees are not provided with copies of their consumer reports obtained by Universal, as required by FCRA. This provision allows employees and applicants to address the information contained in the report with Universal prior to an adverse employment action, Mendez says in the class action lawsuit. He alleges that failure to provide procured credit reports is a further violation of the FCRA by Universal.

“[Universal] violated [the FCRA] by taking adverse employment action that could have been based on undiscovered consumer report information against Plaintiff and other putative class members, without first providing Plaintiff and other affected class members with a copy of the pertinent consumer report, and without providing them a reasonable opportunity to respond to the information in the report and discuss it with [Universal],” alleges the plaintiff in his Universal Studios class action lawsuit.

According to the FCRA class action lawsuit, Mendez seeks to represent two classes; one for those who suffered an adverse employment action as a result of the alleged illegal practices within the past five years and one for those who were the subject of a consumer report procured by Universal within the past five years. Mendez estimates Class Members will number in the thousands.

Mendez also seeks statutory and punitive damages and legal costs.

Mendez is represented by Luis A. Cabassa and Brandon J. Hill of Wenzel Fenton Cabassa PA.

Universal is represented by William E. Grob and Jennifer Monrose Moore of Ogletree Deakins Nash Smoak & Stewart PC.

The Universal Studios FCRA Class Action Lawsuit is Mendez v. Universal City Development Partners Ltd., Case No. 6:15-cv-01422, in the U.S. District Court for the Middle District of Florida.