Starbucks Plans to Settle Employee Background Check Class Action

In preparation for a proposed settlement agreement, a Starbucks employee background check class action lawsuit alleging violations of federal law will reportedly be transferred to Georgia.

The claim will be combined with another class action lawsuit originating in Georgia.

The plaintiffs, Jonathan Rosario and Kevin Wills, alleged that Starbucks employee background checks were administered in violation of the Fair Credit Reporting Act.

The FCRA protects consumer credit reports and background checks. Under the federal law, those issuing such reports must adhere to certain notification and disclosure standards.

According to the two Starbucks class action lawsuits, Starbucks failed to properly inform job applicants that they would be subject to a background check.

In addition, the company reportedly made hiring decisions based on background checks, but failed to allow applicants to dispute negative findings.

U.S. District Court Judge Richard Jones ordered the Starbucks employee background checks to be consolidated into the Northern District of Georgia.

“A transfer to the Northern District of Georgia would be more convenient for the parties and witnesses and would also promote the interests of justice by decreasing the possibility of conflicts between the two cases,” noted Judge Jones in his order consolidating the claims.

According to Yahoo! Finance, the move is in anticipation of a settlement agreement by the coffee giant.

Indeed, Judge Jones also noted in his order, “Now, following years of litigation and several sessions with a private mediator, the parties have reached an agreement in principle to settle both the Rosario case and the Wills case on a class basis.”

Washington plaintiff Rosario alleged in his class action lawsuit that a credit report was obtained for him by Starbucks using the company Accurate Background Inc.

Rosario said that the background report contained a number of incorrect entries concerning theft in Pennsylvania, most likely due to identity fraud.

Rosario alleged that he was not moved forward in the hiring process because of the Starbucks employee background check, but he wasn’t given a meaningful opportunity to dispute the inaccurate report.

Similarly, Georgia plaintiff Kevin Wills alleged that inaccuracies on his Starbucks credit report put him out of the running for a position with the coffee chain.

Wills was allegedly already employed with Starbucks, but was attempting to transfer to a location in Georgia. Wills said that he was tentatively approved, but his background check came back with a report of domestic violence in Minnesota.

Wills claimed that he had never even been to Minnesota, but even after he had the background check corrected, he was unable to salvage the position in Georgia.

The Washington plaintiff is represented by attorneys Beth E. Terrell and Erika L. Nusser of Terrell Marshall Law Group PLLC and James A. Francis, John Soumilas and Lauren KW Brennan of Francis & Mailman PC.

The Georgia plaintiff is represented by James M. Feagle, Kris Skaar, Justin T. Holcombe, and Cliff R. Dorsen of Skaar & Feagle LLP, and Matthew A. Dooley and Anthony R. Pecora of O’Toole McLaughlin Dooley & Pecora CO. LPA.

The Starbucks Employee Background Check Class Action Lawsuits are Jonathan Rosario v. Starbucks Corp., Case No. 2:16-cv-01951, in the U.S. District Court for the Western District of Washington and Kevin Wills v. Starbucks Corporation, Case No. 1:17-cv-03654-CAP-CMS, in the U.S. District Court for the Northern District of Georgia, Atlanta Division.

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