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| Court Approves $5.9 Million Settlement In Fair Credit Reporting Act Settlement Against FirstGroup |
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| Written by Ryan Gray |
| Friday, 18 March 2011 15:51 |
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CHICAGO – A federal judge ruled that First Student is part of proposed $5.9 million settlement tied to criminal background checks that were conducted without written permission. It could end up being the largest-ever settlement involving employer-related claims.
Federal Court Judge Rebecca Pallmeyer gave preliminary approval on March 15 to settle the Fair Credit Reporting Act lawsuits brought by workers and job applicants of school bus contractor First Student and sister company First Transit. A spokesperson for FirstGroup North America, which operates both businesses for FirstGroup plc in Aberdeen Scotland, declined comment as the case had yet to be finalized. The lawsuits allege that First Transit and First Student obtained criminal background check reports about class members without their written authorization and, in some cases, used the reports to deny class members jobs without first providing them a copy of their criminal background report. Under the terms of the proposed settlement, each worker who was terminated by First Transit or First Student based on an unauthorized criminal background check report likely will receive between $2,000 and $4,000, said a spokesperson for the Chicago firm representing the class-action. Each worker who was terminated by First Transit or First Student based on a criminal background check report without first receiving a copy of that report will receive $750. Meanwhile, workers subjected to an unauthorized criminal background report but who continued to work for First Transit or First Student will likely receive between $150 and $300. Workers will be required to complete claim forms in order to receive this money. Cincinnati-based FirstGroup also owns the Greyhound Bus Company, which was not involved in these lawsuits. |




