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Another FCRA Class Action Ends with a Large Settlement

Calvin Klein agreed to a preliminary settlement agreement of $716,400 in the case of Luis A Rodriquez v Calvin Klein Inc., and PVH Corporation. Luis Rodriguez brought the suit after being denied employment based on a background check report that he alleges was inaccurate. According to Rodriguez, he was never provided with a copy of the report or provided the time required under the FCRA to dispute the information found on his background screening report before the company deemed him ineligible for a position as a store manager. The class of applicants included in the suit were those that applied for a job at any of the corporation’s retail stores or warehouse between April 3, 2010 and May 11, 2015. While Calvin Klein and PVH Corporation admitted no wrongdoing, they agreed to the settlement in order to avoid the risk and cost involved with going to trial. The final hearing in this case is set for February 11, 2016.

Under the FCRA, if an employer intends to deny employment based on whole or in part due to the background check report, they must first notify the applicant and provide him/her with a copy of the background check report and the FCRA Summary of Rights , as well as, provide the applicant with sufficient time to respond before making a final decision.

To learn more about FCRA best practices click here.

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