ATC Healthcare Services Hit with FCRA, Wage and Hour Class Action in California

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Two consumers have filed a proposed class action against ATC Healthcare Services, Inc. and four affiliates over alleged Fair Credit Reporting Act (FCRA) abuses and violations of California labor law.

The proposed class action, which has been removed to California’s Southern District, alleges ATC Healthcare Services and its co-defendants—ATC Healthcare, Inc.; ATC Healthcare Services, LLC; ATC Healthcare Staffing; and ATC West Staffing, Inc.—maintain an unlawful practice of obtaining job applicants’ consumer reports without first providing a valid authorization form. The authorization forms provided by the defendants, according to the suit, do not include a clear and conspicuous disclosure allowing for a consumer report to be pulled for employment purposes, nor are provided in a stand-alone document that consists solely of the disclosure, as required by the FCRA.

The defendants’ background check authorization form, the suit says, was illegal in that it included a release clause stating that applicants “release employers and persons named in my application from all liability for any damages on account of his/her furnishing said information.” Moreover, the defendants’ background check authorization allegedly misstated the name of the plaintiffs’ prospective employer as “ATC Healthcare Staffing,” when the legal entity identified on wage and earnings statements was listed as “ATC Healthcare Services.”

Rounding out the lawsuit are allegations that one of the plaintiffs’ paystubs reflected inaccurate information. The individual claims a wage statement from November 2018 failed to account for 0.75 hours of overtime and two hours of double-time work.