Class Action: Managed Labor Solutions, Peoplease Illegally Obtained Consumer Reports on Prospective Employees

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Managed Labor Solutions, LLC and Peoplease, LLC have unlawfully procured and used consumer reports for employment purposes in violation of the Fair Credit Reporting Act, a proposed class action alleges.

The 18-page lawsuit claims Peoplease, a professional employer organization, procured consumer reports on prospective employees without first disclosing its intent to do so and obtaining written authorization from the subject of the reports. The case also alleges Managed Labor Solutions (MLS) has denied employment based on the contents of individuals’ consumer reports without first providing notice of the adverse action and a copy of their report.

Per the lawsuit, Peoplease has procured consumer reports on prospective employees without providing a “clear and conspicuous disclosure”—in a document consisting solely of the disclosure—that their consumer report would be obtained for employment purposes. Further, the company has also failed to secure the individuals’ written authorization to procure a consumer report before doing so, the suit says. The lawsuit claims both actions are a violation of the FCRA, whose notice requirements are designed to “put consumers on notice that their consumer report is being procured and who is procuring it.” Without proper notice as to who is accessing their personal information, consumers are deprived of the right to “make informed decisions, assert protected rights, or maintain control over their personal information,” according to the case.

The suit goes on to claim that MLS, for its part, has failed to provide prospective employees both with notice that adverse action will be taken against them based on the contents of their consumer report and a copy of the report before denying an employment opportunity. Per the case, MLS, by refusing to provide adverse action notice and copies of individuals’ consumer reports before rejecting them for employment, has “willfully disregarded unambiguous regulatory guidance and the plain language of [the FCRA].”

The plaintiff claims to have applied for employment with MLS in Miami in September 2019 and again in October 2020. Per the suit, the plaintiff was denied employment in October based in whole or in part on the contents of his consumer report. The lawsuit alleges, however, that the man never received prior notice of the adverse action or a copy of his consumer report and, as a result, had no way of knowing whether the information reported about him was accurate.

The plaintiff says he ultimately obtained copies of his September 2019 and October 2020 reports through counsel and was “surprised to learn” that Peoplease had obtained the reports without informing him. The case contends the plaintiff would not have authorized Peoplease to obtain his personal information without his knowledge or MLS to obtain his consumer report if he’d known it was going to be obtained illegally and used to deny him employment.

Initially filed in Miami-Dade County Circuit Court on June 1, the lawsuit was removed to Florida’s Southern District Court on July 26.

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