Melissa LaFreniere  |  September 17, 2015

Category: Consumer News

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whole foods sales tax class actionWhole Foods Market Group Inc. has agreed to a nearly $803,000 class action lawsuit settlement over allegations that the natural grocery store chain violated the Fair Credit Reporting Act (FCRA) by not properly disclosing to prospective employees that they were running a background check.

Lead plaintiff and former Whole Foods employee Colin Speer filed the background check class action lawsuit in December 2014 claiming that when he sought employment at the high-end grocer he was handed two forms: a consent and release of information form and a disclosure statement form.

While the Whole Foods class action lawsuit claims that using background check information for employment purposes is not illegal, it is subject to strict disclosure and authorization requirements under the FCRA. In particular, lead plaintiff Speer claimed that Whole Food’s application process “violated the FCRA due to the inclusion of a liability waiver in its FCRA disclosure.”

The Whole Foods lawsuit alleged that it wasn’t clear and conspicuous to potential employees that they were being notified of a background check because it wasn’t in a single document format.

According to the Whole Foods class action settlement agreement, the grocery food chain “denies that it engaged in any wrongdoing,” nor do they admit or concede any actual or potential fault. However, the defendant claimed that if a jury found them liable they could have to pay between $100 to $1,000 to each Class Member so they agreed to the settlement amount.

U.S. District Judge Richard A. Lazzara preliminarily approved the Whole Foods background check class action settlement agreement on Tuesday.

Under the Whole Foods class action settlement, approximately 20,000 Class Members will receive a portion of $802,720. After fees and other expenses, this would leave each Class Member with a payment of about $24. Class Members do not need to file a claim to receive benefits from this settlement, as checks will automatically be sent to those who do not opt out.

The Whole Foods background check class action settlement is open to all Class Members who were Whole Foods Market Group Inc. employees or prospective employees and received the disclosure statement form and consent and release of information form between Dec. 4, 2009 and Nov. 5, 2012 which was then used to procure a consumer report for employment purposes.

Within 10 business days of the court approval of the Whole Foods background check class action settlement, notices will be sent out to inform potential Class Members on how to opt out or object to the deal. The final approval hearing for the Whole Foods settlement is scheduled to take place on Dec. 4, 2015.

More information about the Whole Foods class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

Speer is represented by Luis A. Cabassa and Brandon J. Hill of Wenzel Fenton Cabassa P.A.

The Whole Foods Background Check Class Action Lawsuit Settlement is Colin Speer v. Whole Foods Market Group Inc., Case No. 8:14-cv-03035, in the U.S. District Court for the Middle District of Florida.

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3 thoughts onWhole Foods Settles Background Check Class Action Lawsuit for $803K

  1. Gary Stevenson says:

    Add Me

  2. Candice Jewell says:

    I received a settlement from this case and the check bounced.

  3. Michael says:

    I was not allowed to work because of this!

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