Trace Staffing Solutions Background Check Settlement

Trace Staffing Solutions has agreed to pay $470,000 to resolve claims that they obtained consumer reports in violation of federal law.

The settlement benefits individuals who were employed by or applied for employment with Trace Staffing Solutions and who were the subject of a consumer report that was procured by the company for employment purposes between Jan. 8, 2017 and April 30, 2020. Around 8,700 people are estimated to be included in this settlement Class.

The Trace Staffing Solutions class action lawsuit claimed that the company failed to follow federal regulations when utilizing employee background check services. Allegedly, employees and applicants were not told that the company would be obtaining a consumer report on them.

The plaintiff in the case argued that this lack of disclosure violated federal law – namely the Fair Credit Reporting Act or the FCRA. Amongst other protections, the FCRA offers protections for consumers when it comes to all forms of consumer reports – including those obtained through employee background check services.

“Pursuant to the FCRA, [Trace Staffing Solutions] is required to disclose to its employees – in a document that consists solely of the disclosure – that it may obtain a consumer report on them for employment purposes, prior to obtaining a copy of their consumer report,” the employee background check services class action lawsuit noted.

“[Trace Staffing Solutions’] disclosure and authorization form failed to follow the requirements of the FCRA.”

Trace Staffing Solutions has denied any wrongdoing under the FCRA but has agreed to pay $470,000 to resolve the claims against them. Instead of determining wrongdoing as a trial would, a settlement provides a way for both parties to resolve the claims and avoid the cost or risks of a trial while also securing compensation for affected consumers.

Under the Trace Staffing Solutions settlement, cash payments will be distributed – providing an equal share of the net settlement fund. Although payments are estimated to be $33, this may vary depending on a variety of factors such as the number of claims filed and the net settlement fund after fees and costs are paid.

Class Members will have 90 days to cash their check, after which the check will become void. If a Class Member doesn’t cash their check, the funds will be donated to the Bay Area Legal Services.

In order to benefit from the settlement, Class Members must file a valid claim form by July 20, 2020. To file a claim online, claimants are required to use the notice ID and pin number which was sent to them in their notice. Class Members without this information can contact the settlement administrator.

The settlement will also provide nearly $160,000 in attorneys’ fees, additional court costs, $25,000 in administrative costs, and a service award of $2,500 for the named plaintiff in the case.

Requests for exclusion must be filed by June 22, 2020. Any objections to the settlement terms are due by July 16, 2020. The final approval hearing for the settlement is scheduled for July 30, 2020.

Who’s Eligible

Individuals who were employed by or applied for employment with Trace Staffing Solutions and who were the subject of a consumer report that was procured by the company for employment purposes between Jan. 8, 2017 and April 30, 2020.

Potential Award

$33.

Class Members will receive an equal share of the net settlement fund. Although payments are estimated to be $33, this may vary depending on a variety of factors.

Proof of Purchase

A notice ID and pin number are required to file a claim online.

Claim Form

CLICK HERE TO FILE A CLAIM »

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

7/20/2020

Case Name

Mohammad Harake v. Trace Staffing Solutions LLC, Case No. 8:19-cv-00243-CEH-CPT, in the U.S. District Court for the Middle District of Florida

Final Hearing

7/30/2020

Settlement Website

www.HarakeFCRASettlement.com

Claims Administrator

Harake Class Action
c/o American Legal Claim Services
PO Box 23309
Jacksonville FL 32241
info@harakefcrasettlement.com
1-800-564-5880

Class Counsel

Brandon J. Hill
WENZEL FENTON CABASSA PA

Defense Counsel

Jose I. Leon
GORDON & REES SCULLY MANSUKHANI

Join a Free Employee Background Check Class Action Lawsuit Investigation

If a company performed a background check on you as part of the pre-employment process in the last 5 years, an experienced employment attorney can help you determine if the employer complied with federal rules during that process.

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