pepsico lawsuit fair credit reporting act

The PepsiCo FCRA Lawsuit — An Employee Rights Victory

The PepsiCo FCRA lawsuit is a win for employee rights advocates everywhere. This class action lawsuit is an important example of holding companies accountable for violations of the law in their hiring/employment practices.

What Happened?

A subsidiary of PepsiCo, the global food, and beverage giant, has agreed to pay $1.2 million for violating the Fair Credit Reporting Act. Representatives of the company decided to settle the class-action lawsuit for seven figures after it was found to have been “procuring background reports for employment purposes without making certain required disclosures.”

The PepsiCo FCRA lawsuit is Altareek Grice v. Pepsi Beverages Co., et al., Case No. 1:17-cv-08853, in the U.S. District Court for the Southern District of New York. Its class members may be entitled to funds from the settlement. The final approval hearing is scheduled to be held on November 15, 2018.

The defendants denied wrongdoing but agreed to settle out of court and not go to trial to avoid further litigation and expenses.

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The Fair Credit Reporting Act (FCRA) & the PepsiCo FCRA Lawsuit

The FCRA is a federal law enforced by the Federal Trade Commission and the Consumer Financial Protection Bureau. In regards to employee rights, employers are required to adhere to stringent employee notification rules to comply with the act.

How they violated the act:

The lawsuit was settled due to failing “to disclose that it would obtain a consumer report for employment purposes in a document consisting solely of the disclosure.”

The parameters of the FCRA dictate that violations of the law can result in fines of up to $100 to $1000 per violation.

Employment lawyers are well-versed in the legal complexities of the FCRA. There are multiple steps employers have to go through to stay in compliance with the act. If companies fail to follow these steps, then affected individuals may be able to seek damages.



Do You Think This Has Happened to You?

The PepsiCo FCRA lawsuit is a representation of what can happen when employers violate the law. But violations of the Fair Credit Reporting Act can happen across multiple industries and is definitely not restricted to food and beverage workers.

Have you been denied a job after a potential employer conducted a background check that included your credit report? If they didn’t get your written permission and follow the proper steps, you may have a case and be able to receive damages.

Did you know that you are entitled to dispute the information contained in your background check before the employer takes any adverse action against you — including not hiring you?

If you think an employer or potential employer has violated one or more of the parameters of the FCRA, you need to consult with a skilled credit protection lawyer. Wenzel Fenton Cabassa, P.A. has a strong reputation for being tough litigators that secure the best possible legal outcomes for our clients. We fight tirelessly for fairness, equality, and justice every day.

Contact Wenzel, Fenton, Cabassa P.A. today to schedule your free confidential consultation.

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