Dave & Buster’s Faces Class Action Lawsuit Over Background Checks

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Dave & Buster’s has been hit with a proposed class action lawsuit that accuses the restaurant and arcade chain of deliberately disregarding the Fair Credit Reporting Act when it comes to hiring employees.

Lead plaintiff Joseph Alvarez says he applied for a line cook position and was offered the job last August. However, two days after accepting the position Alvarez claims Dave & Buster’s rescinded the offer based on information in his background check.

The FCRA class action lawsuit states that Dave & Buster’s did not provide Alvarez with a copy of the consumer report so he was deprived of any opportunity to review and discuss it with the potential employer before the offer was revoked.

According to the plaintiff, D&B routinely violates the FCRA when it comes to screening new and existing employees.

“While the use of consumer report information for employment purposes is not per se unlawful, it is subject to strict disclosure and authorization requirements under the FCRA,” the D&B FCRA class action lawsuit said. “Defendant willfully violated these requirements in systemic violation of plaintiff’s rights and the rights of other putative class members.”

Alvarez alleges that Dave & Buster’s uses background checks on current and prospective staff members to make decisions such as failure to hire or promote. The entertainment and restaurant chain will also use the consumer report to reduce hours, change positions, or terminate existing employees.

However, Alvarez argues that even current staff members are not given a copy of the background check or a chance to discuss its findings.

The Dave and Buster’s class action lawsuit states that the FCRA requires potential employers to provide a copy of a background report to the employee as well as information about the consumer reporting agency that prepared it. Alvarez also says the company requesting a background check is supposed to notify the individual if the results are going to affect their job.

“Defendant knew or should have known of its legal obligations under the FCRA,” the D&B class action lawsuit states. “These obligations are well established in the plain language of the statue and in the promulgations of the Federal Trade Commission.”

On Friday, Dave & Buster’s removed the potential class action lawsuit to a Florida federal court citing that the plaintiff is only claiming an FCRA violation.

If approved, the Dave & Buster’s FCRA class action will be open to all Class Members who were employees and job applicants negatively impacted by a consumer report within the last five years. Alvarez estimates there are thousands of potential Class Members throughout the U.S.

The plaintiff is seeking punitive damages as well as statutory damages in the amount of $100 to $1,000 per violation. 

Alvarez is represented by Brandon J. Hill of Wenzel Fenton Cabassa PA.

The Dave & Buster’s Background Check Class Action Lawsuit is Alvarez v. Dave & Busters Inc., Case No. 6:16-cv-00252, in the U.S. District Court for the Middle District of Florida.