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| Criminal Record Checks
April 24 2019

Two lawsuits against Starbucks Corporation for alleged violations of the Fair Credit Reporting Act (FCRA)

On April 23rd, Yahoo! Finance published an article summarizing two lawsuits against Starbucks Corporation for alleged violations of the Fair Credit Reporting Act (FCRA) during the background checks for prospective employees.

The two lawsuits will be combined in the U.S. District Court for the Northern District of Georgia in preparation for a settlement. The first lawsuit, filed in the U.S. District Court for the Western District of Washington, alleged that the plaintiff was denied a job at Starbucks due to inaccuracies on the plaintiff’s criminal record and that Starbucks did not reverse its adverse action when the plaintiff corrected the errors. The second lawsuit, filed in the U.S. District Court for the Northern District of Georgia, alleged that a Starbucks employee lost his job when a background check included criminal convictions for a different person by the same name.

The combined lawsuits claim that Starbucks allegedly violated the FCRA when the company:

  • Failed to provide job applicants with pre-adverse action notifications;
  • Failed to provide job applicants with a summary of their rights under the FCRA before conducting a background check;
  • Failed to provide information about opportunities to correct errors in background checks.