The Hertz Corporation is facing a class action lawsuit in a California federal court over allegations that the company violated federal law by improperly using consumer credit reports and illegal background checks to deny employment to job applicants.
According to the complaint, lead plaintiff Peter Lee received a conditional offer of employment at one of Hertz’s rental car branches in San Francisco. After being scheduled to start work in June 2014, Hertz notified Lee that he would not be hired due to information revealed in his background check.
The plaintiff claims that Hertz’s actions violated the federal Fair Credit Reporting Act (FCRA) because the company failed to provide him with timely notification prior to terminating his employment. The class action seeks to include other job applicants who were similarly denied employment due to Hertz’s failure to comply with FCRA requirements.
Under the FCRA, if an employer makes an adverse employment decision based on a job applicant’s credit information, the employer must provide the applicant with:
- Timely notification,
- A copy of the relevant consumer report, and
- A summary of the applicant’s rights under the FCRA.
The class action also alleges that Hertz has systematically failed to properly disclose to applicants that it may obtain and use their consumer reports in hiring decisions. Prior to obtaining a consumer report or background check, the FCRA requires employers to secure authorization from job applicants and provide written disclosure.
The lawsuit also names Credit Reporting Agency (CRA) – the company that provides Hertz with the credit and background reports – as a defendant. Under the FCRA, a reporting agency like CRA must also comply with strict procedures in providing employers with a job applicant’s credit report.
If you applied for a job or promotion and believe that the employer discriminated against you by its improper use of a background investigation, please contact the attorneys in Sommers Schwartz’ Employment Litigation Group today – the law gives you only a limited amount of time to pursue your right compensation.