Morgan Stanley Unlawfully Requests Job Applicants’ Protected Criminal History Information, Class Action Alleges

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Morgan Stanley & Co. faces a proposed class action wherein a job applicant claims the investment banking company rescinded her job offer after unlawfully requesting her protected criminal history information.

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The nine-page lawsuit alleges Morgan Stanley has run afoul of Massachusetts law by asking applicants to disclose certain criminal history data protected by state statutes, storing records of the information and using application forms that request it.

The plaintiff, a Black woman who resides in Massachusetts, says she was offered a position at a Morgan Stanley office in Boston in May 2022. As part of the onboarding screening process, she was required to undergo a criminal background check, the suit relays.

In an email sent to the plaintiff in early July of that year, the company asked her to provide further details about parts of her criminal history, including information protected under state law, the case shares.

Specifically, the woman was asked to provide police and/or incident reports and court documentation for arrests that did not lead to convictions, the complaint states. In addition, Morgan Stanley requested she include a “detailed narrative of the facts and circumstances” of each incident, the filing says.

The lawsuit notes that criminal history involving arrests that do not lead to convictions, among other data, is protected under Massachusetts law. As such, the suit claims the company violated these statutes by asking the plaintiff to provide additional details about these incidents.

Per the case, the plaintiff was told by Morgan Stanley on August 12, 2022 that her job offer had been withdrawn. The complaint shares that although the woman asked if there were other positions at the company for which she would be eligible, she was informed that “Morgan Stanley did not hire anyone with any criminal record as a matter of company policy.”

“It is well documented that communities of color, including Black communities, are arrested and convicted at rates significantly higher than the white population,” the filing states.

The suit argues that “for every 100 White men, about 6 are expected to serve time in prison, but for every 100 Black men, about 33 are expected to serve time in prison.”

The plaintiff claims that given these statistics and the company’s hiring policies, Morgan Stanley used her protected criminal history information to discriminate against her in violation of state law.

The lawsuit looks to represent anyone who applied for employment in Massachusetts at Morgan Stanley within the applicable statute of limitations period and was subjected to unlawful inquiries or actions regarding protected criminal history information.

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