News Details
Federal court grants preliminary approval of class action settlement in case HSPRD brought on behalf of 150,000 transportation workers and job applicants.
Mar. 16, 2011Court Preliminarily Approves 5.9M Fair Credit Reporting Act Settlement Against First Group.
LARGEST-EVER FCRA SETTLEMENT INVOLVING EMPLOYER-RELATED CLAIMS
Chicago, IL - Federal Court Judge Rebecca Pallmeyer yesterday gave preliminary approval to a $5.9 million settlement involving two Fair Credit Reporting Act lawsuits brought by incumbent employees and job applicants of two sister transportation companies, First Transit, Inc. and First Student, Inc. The lawsuits allege that First Transit and First Student obtained criminal background check reports about class members without their written authorization and, in some cases, used the reports to deny class members jobs without first providing them a copy of their criminal background check report.
The settlement, which is believed to be the largest ever involving employment-related Fair Credit Reporting Act claims, provides that class members who choose to participate in the settlement will divide approximately $4.3 million dollars after attorneys’ fees and costs of settlement administration are deducted from the settlement fund. Under the terms of the proposed settlement, each worker who was terminated by First Transit or First Student based on an unauthorized criminal background check report likely will receive between $2,000-$4,000 if the worker returns a claim form. Each worker who was terminated by First Transit or First Student based on a criminal background check report without first receiving a copy of that report will receive $750 if the worker returns a claim form. Each worker who was the subject of an unauthorized criminal background report, but who continued to work for First Transit or First Student likely will receive between $150 and $300 if the worker returns a claim form.
“We believe that this settlement agreement represents a great victory for the thousands of workers who had criminal background checks performed on them without their written authorization and who otherwise were not provided the procedural protections afforded by the Fair Credit Reporting Act,” said Christopher Wilmes, of Hughes Socol Piers Resnick & Dym, an attorney for the Plaintiffs.
Hughes Socol Piers Resnick & Dym has developed a specialty in enforcing employees’ rights related to employers’ use of criminal background check reports. “We believe that employers must be transparent about their use of criminal records and should only use them when they truly indicate an employee is unqualified to perform a particular job. We will continue to bring these claims where we believe that employers are not being fair and responsible about their use of criminal records.” said Wilmes.
Notice of the proposed settlement will be sent to class members by May 1, 2011, and Judge Pallmeyer has scheduled a final fairness for August 1, 2011.
