Waffle House one of the largest chain restaurants in the southeast was hit with a class action lawsuit for violating the Fair Credit Reporting Act (FCRA). The lead plaintiff in the case William Jones applied at a Waffle House in Ormond Beach, FL in December of 2014, and was denied employment due to inaccurate records reported by Source for Public Data, L.P. Jones claimed that Waffle House denied him employment due to supposed criminal convictions, despite them being false and field 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. did not inform Mr. 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”. However, 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, to determine if the case will go to arbitration.