Starboard Group Management Co. Tossed with FCRA Lawsuit

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A proposed class action filed in Florida claims defendant Starboard Group Management Company Incorporated, a Florida company that manages Wendy’s fast food restaurants in nine states, unlawfully took adverse employment action without first complying with certain mandatory Fair Credit Reporting Act (FCRA) requirements.

According to the lawsuit, the plaintiff applied for and received a job offer, contingent on the successful completion of a background check, for an IT support coordinator position with the defendant in February 2016. The plaintiff claims his background check revealed a criminal conviction, the revelation of which caused the defendant to rescind its job offer. Before this adverse action was taken, however, the defendant allegedly unlawfully failed to provide the plaintiff with a copy of the background report in question and with a copy of his rights under the FCRA.

The criminal conviction on the plaintiff’s background report was reportedly noted in error, yet the defendant, upon being told of the mistake, refused to change its position, a scenario the case claims may be similar to that experience of potentially thousands of other prospective employees:

“Upon information and belief, Starboard Group has purchased hundreds and perhaps thousands of consumer reports from consumer reporting agencies such as Sterling, which were then used as a basis for taking adverse action against job applicants,” the lawsuit argues. “As a matter of practice, Starboard Group regularly and consistently fails to provide the ‘adverse action notice’ to job applicants as required by [the FCRA].”