First Advantage recently agreed to a class action lawsuit settlement. The settlement will resolve claims that First Advantage ran background checks without prior authorization (a violation of the Fair Credit Reporting Act (FCRA)).

The Case: Chism v. First Advantage Background Services Corp.

The Court: Cal. Super. Ct., San Francisco Cty

The Case No.: CGC-17-560531

The Plaintiff: Chism v. First Advantage Background Services Corp.

The plaintiffs in the case claim that First Advantage, the defendant, routinely violated federal law by running background checks without obtaining prior authorization from consumers (which is required by law). Class members in the case include any consumers with a background report generated by First Advantage without prior authorization that was offered to a prospective employer between Aug. 17th, 2012, and Nov. 20th, 2020. According to the plaintiffs in the case, the background check company failed to secure prior consumer authorization as required by the FCRA.

The Defendant: Chism v. First Advantage Background Services Corp.

The Defendant in the case, First Advantage, is a background check company that provides services to employers when guiding job applicants through their hiring process. Chism v. First Advantage Background Services Corp. is the second legal action First Advantage faces claiming the company routinely flouted federal law by running background checks on job applicants without first obtaining consent as required by law.

Details of the Case: Chism v. First Advantage Background Services Corp.

The FCRA was created to protect consumers by regulating the information collected (and distributed) by credit reporting bureaus. When companies request or run a background check on an employee or job applicant, the FCRA requires that they first provide "a clear and conspicuous disclosure" that "consists solely of the disclosure" so individuals are adequately notified of the background check and how the information will be used. Before running the reports, employers or prospective employers must obtain written authorization from consumers. First Advantage allegedly violated the FCRA on both counts: 1) failing to inform consumers of the background check with a clear and conspicuous disclosure and 2) failing to get written authorization before running the report. While First Advantage did not admit to any wrongdoing, they did agree to resolve the class action claims with a settlement. The settlement benefits individuals with a background report provided to a prospective employer by First Advantage without prior authorization between Aug. 17th, 2012, and Nov. 20th, 2020. As part of the settlement agreement, First Advantage agreed to change its terms and policies to ensure consumers receive prior authorization before a potential employer runs their background check.

If you have questions about California employment law or need to discuss labor law violations in the workplace, please contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.