May 16 2015 Home Depot Faced with a Potential Class Action Lawsuit
Privacy issues may be violated when employers use credit report information on their current or potential employees. The Fair Credit Reporting Act (FCRA), is intended to provide protections against information being used – or not reported correctly.
Home Depot Inc. may face a class action lawsuit as they allegedly reviewed background check and credit reports without properly notifying employees and potential employees.
Home Depot Inc. also allegedly failed to provide copies of the credit and background reports to current and potential employees before taking actions against them based on these reports. These actions clearly violate the Fair Credit Reporting Act (FCRA).
A Texas resident named Trent Henderson filed the lawsuit in Georgia federal court on behalf of himself and other potential class members (Henderson v. The Home Depot Inc., Case No. 1:14-cv-02123, in the U.S. District Court for the Northern District of Georgia).
Mr. Henderson alleges that he applied to the home improvement company online agreeing to terms and allowing disclosure of information. Mr. Henderson interviewed, disclosed past history and was declined employment by the company after undergoing a drug screening. It is alleged that the company declined employment based on information discovered in his credit report.
Home Depot Inc.is a very large employer across the U.S. so the outcome of this class action lawsuit may affect thousands of applicants who were denied employment under similar circumstances.
What can we learn from Home Depot?
An applicant or employee must be notified properly of background and credit report findings and given an ability to discuss findings, or a company’s denial of employment may be considered an “adverse employment action” and therefore a violation of FCRA.
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