The parent company of Food Lion has recently joined the ranks of companies paying large dollar amounts to settle a Fair Credit Reporting Act (FCRA) class action lawsuit. On March 2, 2015, a preliminary motion was filed by the plaintiffs in Brown v. Delhaize America, LLC, (the parent company of Food Lion) in which the plaintiff’s attorneys are seeking the court’s approval of a $3 million FCRA class action settlement.

At the root of the lawsuit were the company’s disclosure forms and its adverse action procedures. As we have seen in many of these cases, the plaintiff claimed the defendants’ disclosure form violated the FCRA because it was not a stand-alone document. The plaintiff also claimed that the defendants “frequently took adverse employment action against their employees based on their background checks without providing those employees with a pre-adverse action notice required by the FCRA.”

This is another reminder to employers to review their disclosure forms and their adverse action procedures to make sure everything complies with the FCRA, as well as another state and local laws. Corporate Screening offers compliance services and products that can assist, including our Screening Assessment Program (SPA) and our Adverse Action Workflow Tool. For more information visit Compliance Services on our website, www.CorporateScreening.com