PeopleFacts has agreed to a $2.4 million settlement with job applicants who claim their criminal histories were shared with employers without the legally required notice under the Fair Credit Reporting Act (FCRA), according to a motion filed in Michigan federal court.
The deal, reached with Pluto Acquisition Opco LLC, which operates as PeopleFacts LLC, comes after allegations that the company ignored notice and certification obligations when sending background reports to employers.
U.S. District Judge Robert J. White granted preliminary approval in June and set Oct. 20 for a final approval hearing.
Nearly 19,000 Job Seekers Eligible for Payments
According to court filings, 18,965 job applicants could receive checks of approximately $126 each as part of the monetary settlement class. These individuals allegedly were not informed that PeopleFacts was reporting their criminal history to prospective employers.
Separately, a sweeping injunctive relief class of about 4.4 million people will not receive direct payments but will benefit from new compliance procedures PeopleFacts has agreed to adopt to align with FCRA certification requirements.
The FCRA requires consumer reporting agencies to confirm that employers disclose to applicants and obtain their authorization before requesting background checks.
