in Newswire Published on February 22, 2023

Ace Hardware Corporation Hit with Class Action Over Alleged Use of Background Checks to Make ‘Adverse’ Employment Decisions

Last Updated on March 22, 2023

Smith v. Ace Hardware Corporation

Filed: February 21, 2023 ◆§ 1:23-cv-01038

A class action claims Ace Hardware failed to provide certain disclosures to prospective employees before making adverse employment decisions based on the contents of their background checks.

Defendant(s)

Ace Hardware Corporation

Law(s)

Fair Credit Reporting Act

State(s)

Illinois

A proposed class action claims Ace Hardware Corporation has failed to provide prospective employees with a copy of their background check and a summary of their rights before making adverse employment decisions based on the contents of the screening.

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The nine-page case alleges the hardware store has systematically violated the Fair Credit Reporting Act (FCRA) by using consumer reports as part of its background checks to deny employment opportunities without first providing certain disclosures to the job applicant.

The plaintiff, a Florida resident, claims he was scheduled to begin working at an Ace Hardware warehouse in March 2022, but the company decided to rescind its offer after procuring a consumer report that inaccurately included criminal convictions for crimes he had not committed, the suit says.

Although federal law required Ace Hardware to present the plaintiff with a written statement of his rights under the FCRA and a copy of the consumer report before taking adverse action, the company provided neither of these disclosures, the filing charges.

As a result of Ace Hardware’s “willful” and “reckless” failure to provide required disclosures, the plaintiff and other similarly situated individuals were denied a “sufficient” amount of time to correct any inaccuracies, causing them to suffer financial and reputational harm, the suit contends.

The lawsuit looks to represent the following class:

“All natural persons residing in the United States who beginning five (5) years prior to the filing of this Complaint and continuing through the conclusion of this action, (i) applied for employment with Defendant, (ii) were the subject of a consumer report obtained and used by Defendant for employment purposes, (iii) were the subject of an adverse employment action by Defendant, and (iv) were not provided with pre-adverse action notice, a copy of the report, and/or a written summary of their rights under the FCRA prior to Defendant taking adverse action.”

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