Waffle House, one of the largest chain restaurants in the southeast, was hit with a class action lawsuit for violating the FCRA. The lead plaintiff in the case, William Jones, applied for employment at a Waffle House in Ormond Beach, Florida on December of 2014. He was denied employment due to inaccurate records reported by Source for Public Data, L.P. Jones claimed that Waffle House did not offer him employment due to supposed criminal convictions, despite them being false and filed suit on October 1, 2015.
The FCRA explicitly states that when procuring reports for employment purposes, Consumer Reporting Agencies must “follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about who the report relates.” Furthermore, the background screening company must inform the subject of the report about the adverse information reported. In this case, Public Data, L.P. failed to inform Jones. Defendants moved to dismiss the case due to “lack of standing,” stating there is no proof that Waffle House ran a search on the plaintiff using Public Data, and therefore Jones cannot prove injury-in-fact, causation, or redressability.” The U.S. District Court Judge Roy Dalton, Jr., tossed Waffle House’s motion due to purported lack of subject matter jurisdiction.
There will be a hearing on July 1, 2016 to determine if the class action lawsuit for violating the FCRA will go to arbitration.