On July 7, the United States District Court for the Southern District of California preliminarily approved a $1.75 million class action settlement under the FCRA involving Chuck E. Cheese’s background check practices. This settlement serves as another reminder of the risks that employers face in conducting background checks on prospective employees. The plaintiffs alleged Chuck E. Cheese violated the FCRA by informing applicants that a background check would be obtained through a disclosure form that contained extraneous, impermissible information. This settlement is part of a growing list of multi-million dollar settlements pertaining to employers’ background check practices and their disclosure forms.

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