Pride Industries background check disclosures $600K class action lawsuit settlement

Pride Industries agreed to pay $600,000 as part of a settlement to resolve class action lawsuit claims it violated the federal Fair Credit Reporting Act (FCRA) with insufficient background check disclosures.

The settlement benefits individuals who were subject to a background check report obtained by Pride Industries related to a job application or employment between Jan. 28, 2015, and Dec. 31, 2021.

The settlement also includes two subclasses. The Five Year Subclass covers dates from Jan. 28, 2015, to Jan. 27, 2018. The Two Year Subclass covers dates from Jan. 28, 2018, to Dec. 31, 2021.

Pride Industries provides business services such as facility management, consulting, packaging, custodial work, supply chain logistics, landscaping and more. The company reportedly partners with disabled individuals, military veterans, foster youth and trafficking survivors to find lasting employment and job security.

According to a class action lawsuit, Pride Industries fails to give applicants and employees proper disclosures when running background checks on them. These insufficient disclosures allegedly violated the FCRA. 

Under the FCRA, employers are required to tell applicants and employees they can use information from a background check to deny employment, promote or terminate employment. This information must be given in writing. In addition, the FCRA requires employers to get written permission before having a company run a background check.

Pride Industries hasn’t admitted any wrongdoing but agreed to resolve these allegations with a $600,000 class action lawsuit settlement.

Under the terms of the settlement, class members can receive a cash settlement from the net settlement fund. Of the net settlement fund, 40% will be used for equal payments to the Five Year Subclass, while the remaining 60% will be used to fund equal payments to the Two Year Subclass. 

Exact payment amounts will vary depending on the subclass and the number of participating class members. Class members who received a mailed settlement notice can find a payment estimate on the first page of the document.

Any funds remaining from the settlement will be donated to the Employment Rights Project of Bet Tzedek, which provides free legal aid to people in need.

The deadline for exclusion and objection is Oct. 25, 2022. 

The final approval hearing for the Pride Industries background check lawsuit settlement is scheduled for Feb. 8, 2023.

Class members have the option to update their address on the settlement website to ensure they receive their payments.

No claim form is required to benefit from the background check lawsuit settlement. Class members who do not exclude themselves will automatically receive settlement benefits.

Who’s Eligible

The settlement benefits individuals who were subject to a background check report obtained by Pride Industries related to a job application or employment between Jan. 28, 2015, and Dec. 31, 2021.

The settlement also includes two subclasses. The Five Year Subclass covers dates from Jan. 28, 2015, to Jan. 27, 2018. The Two Year Subclass covers dates from Jan. 28, 2018, to Dec. 31, 2021.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Exclusion and Objection Deadline

10/25/2022

Case Name

Desire Oyero v. Pride Industries, et al., Case No. 20CV362399, in the California Superior Court for the County of Santa Clara

Final Hearing

02/08/2023

Settlement Website

OyeroFCRASettlement.com

Claims Administrator

Oysero v. PRIDE Industries
c/o Class Action Administrator
P.O. Box 23648
Jacksonville, FL 32241-3648
800-620-5873

Class Counsel

Shaun Setareh
Thomas Segal
Farrah Grant
SETAREH LAW GROUP

Defense Counsel

Rod M Fliegel
Alison S Hightower
LITTLER MENDELSON PC