UPS Class Action Says Background Check Practices Violate FCRA

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UPS is facing a class action lawsuit that alleges the company uses background checks to make employment decisions without providing the results to job applicants or employees, an alleged violation of the Fair Credit Reporting Act.

Plaintiff John Riley of Florida alleges he applied for a job as a customer service representative with the United Parcel Service of America Inc., the world’s largest package delivery company, in November 2016.

He says he was offered the job and was informed that he would be required to complete a background check. UPS reportedly used a third-party vendor to procure a consumer report on Riley.

According to the UPS class action lawsuit, Riley was notified that he did not get the job based on the results of the background check. However, Riley says he was not given any information about the contents of the background report, even though it was used to make an employment decision.

“As a result, Plaintiff was deprived of any opportunity to review the information in the report and discuss it with Defendant before he was terminated from employment, in violation of the FCRA,” the UPS class action lawsuit states.

Riley asserts that this practice “violates one of the most fundamental protections” the FCRA provides to employees.

“It was unlawful for Defendant to terminate Plaintiff’s employment or deny Plaintiff employment on the basis of information contained in a consumer report, without first providing Plaintiff with a copy of the report, notifying Plaintiff of his rights under the FCRA, and giving Plaintiff a reasonable opportunity to respond,” the UPS background check class action lawsuit continues.

Riley asserts that UPS routinely obtains consumer reports and uses the information contained in the background checks as a basis for taking adverse employment action against job applicants and employees, including termination of employment, demotion, reduction in working hours, failure to promote, and failure to hire.

According to the UPS class action lawsuit, the use of background checks for employment purposes is not unlawful, but the FCRA sets forth strict disclosure and authorization requirements to ensure the subject of the background check is able to obtain a copy of the report and that the person is given the opportunity to respond to the information contained in the consumer report.

By filing the UPS class action lawsuit, Riley seeks to represent a nationwide Class of all UPS employees and prospective employees against whom adverse employment action was taken based on the contents of a consumer report, and who were not provided with pre-adverse notice as required under the FCRA.

Riley is seeking damages between $100 and $1,000 per FCRA violation. He is also seeking punitive damages, reasonable attorneys’ fees and costs, and any other relief deemed proper by the court.

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

The UPS Background Check Class Action Lawsuit is John Riley, et al. v. United Parcel Service of America Inc., Case No. 6:17-cv-00254, in the U.S. District Court for the Middle District of Florida.

UPDATE: On March 17, 2017, UPS argued that a class action lawsuit alleging the mail and delivery service violated the Fair Credit Reporting Act when it obtained and used background checks to make hiring decisions should be dismissed.