This class action lawsuit brought on behalf of applicants for employment Defendant Amazon.com, Inc. and employment placement services with Defendants SMX, LLC and Staff Management Solutions, LLC, collectively doing business as “Staff Management | SMX, a TrueBlue Company” a national employment staffing agency.
As alleged, Defendants systematically use consumer reports to make adverse employment decisions without, beforehand, providing the person who is the subject of the report sufficient and timely notification and a copy of the report and a summary of rights under the Fair Credit Reporting Act. This effectively leaves the person who is the subject of the report without any opportunity to correct any errors on the report or to even know who prepared the background report about him or her which formed a basis for the adverse action.
The FCRA regulates “consumer reports” for employment purposes, commonly called “background reports.” Congress included in the FCRA a series of due-process-like protections that impose strict procedural rules on “users of consumer reports,” such as Amazon and SMX. This action involves Defendants’ systematic violations of those important rules.
Plaintiff was denied employment as a puller at Amazon based on a standardized background report conducted by Sterling Infosystems, Inc. (“Sterling”) pursuant to an agreement between Sterling and SMX. Sterling “scored” Plaintiff as not eligible for the job with Amazon based upon the purported existence of a felony conviction.
In violation of the FCRA, Defendants failed to comply with the FCRA’s mandatory pre-adverse action notification requirement, and failed to provide a copy of the inaccurate background report they obtained from Sterling, before talking adverse action.
Plaintiff seeks monetary relief for himself and a class of similarly situated employment applicants to whom Defendants failed to comply with pre-adverse action notification.