When Postmates failed to hire potential candidates based on background checks, the applicants argued the business was in violation of the federal Fair Credit Reporting Act. The plaintiffs claim the company did not provide a copy of background check results or the legally required stand-alone disclosure before requesting the background checks. Under the settlement terms of a class action lawsuit filed by three denied applicants, Postmates must create a $2.5 million settlement fund to be distributed to Class Members.

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