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Compliance update: Pizza Hut's FCRA Lawsuit

The lawsuit filed against Pizza Hut by the FCRA last month is similar to the ones filed against Michael’s earlier this year and Whole Foods in 2014. The background check disclosure in the application process was not absolutely pristine, and thus the restaurant chain is not in compliance with FCRA mandates. This is a class action lawsuit and likely to be costly to the restaurant chain if the previous suits are any indication.

What, in layman’s terms, is the issue? The issue is that the FCRA has been cracking down on companies for the past two years that bundle more into the background check paperwork than just the disclosure.

In the case, the problem is spelled out.  The disclosure:

  • contains “extraneous information”
  • contains a liability release
  • is found in the same section as other documents, including a form about at-will employment and a release of previous employment information.
  • is never presented as a standalone form

A copy of the full court document is available here.

Ensuring FCRA Compliance

However, getting a FCRA compliant disclosure is not simply a cut-and-paste process. In order to develop the release that KRESS uses with its clients, we did extensive research and met with our employment lawyer several times. Now, all KRESS clients have the peace of mind knowing that they are providing the right information to their applicants and that they are in compliance with the latest policy enforcements from the FCRA.

[callout font_size=”13px” style=”fire”]Ready for peace of mind? Contact KRESS to audit your current application process and implement FCRA-compliant policies. [/callout]

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