Sodexo, Inc. was recently named as the defendant in a putative Fair Credit Reporting Act class action based on alleged improprieties in its hiring procedures. The case, Piveronas v. Sodexo, Inc., was originally filed in the Court of Common Pleas of Allegheny County, Pennsylvania, and removed to the United States District Court for the Western District of Pennsylvania by Sodexo on April 7, 2017.
The named plaintiff, Robert Pivoneras, alleges that Sodexo routinely violates the FCRA's mandate that employers provide consumers with a "clear and conspicuous" background check disclosure, consisting solely of the disclosure, before procuring a consumer report. He also alleges Sodexo's disclosures conflate "consumer reports" and "investigative consumer reports" under the FCRA, thus erasing the statutory distinction between the two types of reports (and the attendant obligations on employers who procure one or both).
Specifically, Pivoneras alleges that in mid-2016, he applied for a facilities manager position with Sodexo and, during the application process, Sodexo provided him with a series of background check disclosures, none of which clearly and conspicuously informed him he would be the subject of an investigative consumer report. He also alleges the disclosures, in various ways, did not consist of "solely" the disclosure, as required by the FCRA, because each included extraneous information.
Pivoneras also alleges that Sodexo routinely fails – and failed with respect to his application – to fulfill its obligation to provide consumers with a pre-adverse action notice. He alleges that after quitting his then-current employment position (done at Sodexo's instruction), he was provided an e-mail stating that as a result of a background check, he was no longer eligible for the Sodexo position. He alleges that days after being told he was ineligible for employment, he was e-mailed a purported FCRA pre-adverse action letter from Sodexo. He also alleges he was not provided a summary of his rights under the statute.
Pivoneras brings his claims on behalf of both himself and four putative nationwide classes based on allegedly improper disclosures and failures to provide notice prior to taking adverse action. He seeks actual damages, statutory damages, punitive damages, and attorneys' fees and costs.
Sodexo has yet to file its response to the Complaint.
The Troutman Sanders' Consumer Financial Services Law Monitor blog offers timely updates regarding the financial services industry to inform you of recent changes in the law, upcoming regulatory deadlines and significant judicial opinions that may impact your business. To view the blog, click here
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
