K-Mart Shells Out $3M To Settle Employment Screening Suit

Law360, New York (January 28, 2013, 2:08 PM EST) -- K-Mart Corp. will pay $3 million to settle accusations that it violated federal credit reporting regulations by failing to properly warn prospective employees that it would reject them based on background checks, according to court documents filed Friday.

K-Mart and corporate parent Sears Holding Corp. will pay out to more than 60,000 class members, resolving claims that the retailer breached their rights under the Fair Credit Reporting Act by not giving them a sufficient chance to rebut negative background reports.

The law requires employers to notify...
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