LSG Sky Chefs Grounded with FCRA Class Action

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The owning and operating entities of LSG Sky Chefs have been hit with a class action claiming the airline catering and in-flight services company violated the Fair Credit Reporting Act (FCRA) by failing to provide mandatory disclosures prior to getting background reports on job applicants and employees. Filed in Illinois district court, the lawsuit alleges the defendants—Sky Chefs, Inc., LSK Sky Chefs North America Solutions, Inc. and LSG Group, LLC—procured the plaintiff’s background report from HireRight, Inc. after he applied to work for the company as a cook. Included with the report was a form titled “Other Disclosures, Acknowledgements & Authorizations Regarding Background Investigation for Employment Purposes” that violated the FCRA because it reportedly contained “extraneous information that violates the FCRA’s stand-alone disclosure requirement.”

The lawsuit summarily claims that the defendants’ extra form goes beyond what is allowed by the FCRA when obtaining potential employees’ consumer reports and served as an illegal blanket authorization allowing LSG Sky Chefs to procure as many consumer reports as they want throughout an individual’s employment without his or her permission.

“[The defendants’] inclusion of this extraneous information was intentional and self-interested,” the complaint argues. The extra language permitted the defendants “and its consumer reporting agency to procure information on employees, at any time during their employment, and purported to operate as a functional waiver of employees’ privacy rights.”