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Kelly Services to pay $6.7 Million in FCRA Background Check Lawsuit


Kelly Services has agreed to settle a class action lawsuit for allegedly violating the Fair Credit Reporting Act (FCRA).

As mentioned in our white paper – Top 3 FCRA lawsuits and how to prevent them – the background check release form is a top target for class action lawyers looking to capitalize on big paydays.

According to topclassactions.com, plaintiffs allege that between July 18, 2012 and January 23, 2014, Kelly Services provided its employees and job applicants with a FCRA disclosure form to conduct background checks that also contained a liability release. Unfortunately, this is in clear violation of the Fair Credit Reporting Act (FCRA).

The Alleged Improper Sentences

The first allegedly improper sentence stated, “To the fullest extent permitted by law, I release Kelly, its employees, agents, successor and assigns, from any and all claims, actions or liability whatsoever that are in any way related to the procurement of a consumer report about me, or any subsequent investigation(s) of my background or personal history.”

The second allegedly improper sentence stated: “I understand that this Authorization is not a contract for continued employment and does not alter the at-will nature of my employment or offered employment.”

Plaintiffs claimed that the inclusion by Kelly Services of the waiver and disclaimer on the disclosure form violated the FCRA’s stand-alone disclosure requirement.

Kelly Services denies the allegations but has agreed to settle the FCRA class action lawsuit to avoid the risk and expense of ongoing litigation. Approximately 221,216 class members are eligible for benefits from the Kelly Services class action settlement. FULL ARTICLE

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