L3 Technologies, Inc., a military contractor, was recently hit with a Fair Credit Reporting Act putative class action in California federal court, alleging that it violated the “stand-alone” disclosure requirement in its background reports.
According to the complaint, plaintiff Joseph Estes was hired by L3 and worked as a mechanic for the company in California. During the application process, Estes filled out a “Background Investigation Consent” form permitting L3 to obtain a background report on him. Estes claims that L3 “unlawfully inserted liability release provisions” into this form, in violation of the FCRA’s requirement that businesses obtaining a consumer report for employment purposes must notify the applicant of that request “in a document consisting solely of the disclosure.”
Estes seeks to represent a nationwide class of persons “who filled out [L3’s] standard ‘Background Investigation Consent’ form that included an authorization and a liability release clause” since November 21, 2012.
This case is the latest in a string of class actions based on the FCRA’s stand-alone disclosure requirement. These class actions have affected every type of industry, including car rental companies, courier services, fast food restaurants, and food stores.
The case is Estes v. L3 Technologies, Inc., Civil Action No. 3:17-cv-02356 (S.D. Cal.). We will continue to monitor the case for developments.