Dispensary Settles Class Action Related to Improper Background Practices

07/05/2022 03:10 PM By Kayla Florence

A Florida-based marijuana dispensary has agreed to settle alleged class action violations of the Fair Credit Reporting Act by paying a $60,500 settlement. 

The Fair Credit Reporting Act (FCRA) was passed in 1970 to protect potential and existing employees from adverse employment decisions, specifically due to information in their background checks. This law encourages the validity and fairness of consumer information relayed by consumer reporting agencies. Under the FCRA, employers are required to follow specific protocols if they use background checks as a part of their employment process and if an applicant does not get hired because of details of a background screening. The suit alleged the employer was negligent in their adherence to this law, leading to this class-action suit, set to have its final approval hearing on August 18, 2022.

As reported by Top Class Actions, approximately 1,000 applicants and employees failed to receive a notice, summary, or copy of their background report after it was used against them regarding employment, making them eligible for a settlement from the lawsuit. Though the company did not admit wrongdoing, they have agreed to pay to resolve the claims.


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