Courier Service Settles Background Check Lawsuit for $2.5 Million Over Alleged FCRA Violations

Applicants who applied for job with Postmates – a logistics company that operates a network of couriers who deliver goods locally – may be entitled to payment from a $2.5 million class action lawsuit settlement fund over claims the company’s background check process allegedly violated the federal Fair Credit Reporting Act (FCRA), according to a news report on the Top Class Actions website.

Top Class Actions reports the plaintiffs in the case – Loretta Nesbitt, Jamal St. Louis, and Arian Nunez – claim Postmates violated the FCRA by not providing them with a stand-alone disclosure before requesting the background check reports, and by not providing them with a copy of the background check results and a notice of their rights before taking adverse action against them.

Postmates will create a $2.5 million settlement fund to be distributed to eligible Class Members who will include all people who signed up to work as a Postmates courier and were subjected to an employment background check between July 31, 2013 and May 1, 2016. Postmates denies the allegations of the plaintiffs but agreed to the settlement to avoid further litigation. FULL ARTICLE