Sam’s Club Illegally Obtains Consumer Reports on Job Seekers, Claims Class Action Lawsuit

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A man looking for a job says that Sam’s Club hired him but then pulled his consumer report illegally and used information from it to fire him.  

Lead plaintiff, Jermaine Williams, filed a nationwide class action lawsuit in Florida federal court last week. Williams says that he and other job applicants at Sam’s Club and its parent company, Walmart, have their consumer reports pulled without their knowledge in violation of federal credit reporting laws – the Fair Credit Reporting Act (FCRA). 

Indeed, Williams says that he lost his job at Sam’s Club as a result of information from a consumer report he was not given to review or a chance to dispute. Further, he has been deemed “ineligible” in Walmart’s hiring records due to this information that he worries is inaccurate.  

The class action lawsuit alleges that Sam’s Club and Walmart contract with an outside company to obtain consumer reports on job applicants.  

 The plaintiff says that he started working at Sam’s Club as a temporary employee, hired through a staffing agency. He says that once he obtained the requisite number of hours, he applied for a regular position with the company; however, Williams claims that the hiring process included obtaining his consumer reports.  

The class action lawsuit argues that pulling a job applicant’s consumer reports is not a mere technicality. Many job seekers are denied employment based on information in these reports. Further, the FCRA gives these job seekers the right to see their consumer reports and address any negative information, along with errors that may be present.  

Williams says he did not know his consumer reports were going to be obtained. Further, he was not provided a copy of the information as required under the FCRA.  

Indeed, after Williams was hired, his position was terminated based on information on his consumer reports. Williams says he did not have a chance to review the report and address anything on it during the hiring process. He also says that he is concerned the report may contain an error that led to the termination of his job with Sam’s Club.  

“Providing a copy of the background report as well as a statement of consumer rights before making a final adverse employment decision arms the nation’s millions of job applicants with the knowledge and information needed to challenge inaccurate, incomplete, and misleading consumer reports,” states the class action lawsuit. 

Williams seeks to represent nationwide Classes of both regular and temporary staff job seekers at Sam’s Club or Walmart. The class action lawsuit is seeking damages in the form of fines under the FCRA. 

Have you ever lost a job or not hired because Sam’s Club or another company pulled your consumer report? We want to hear from you! Tell us about your experience in the comment section below.  

The plaintiff is represented by Marc R. Edelman of Morgan & Morgan PA and Craig C. Marchiando of Consumer Litigation Associates, PC.  

The Sam’s Club Hiring Process Class Action Lawsuit is Williams v. Walmart, Inc., Case No. 8:21-cv-01480 in the U.S. District Court for the Middle District of Florida Tampa Division.  

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