Kmart Employment Background Checks Violate FCRA: Suit

Law360, New York (October 19, 2011, 6:44 PM EDT) -- Kmart Corp. on Monday became the latest company to be hit with a proposed class action alleging that the way it conducts background checks on prospective employees violates the Fair Credit Reporting Act.

The suit, filed in Virginia federal court against Kmart and its parent Sears Roebuck & Co., comes amid a string of complaints claiming that employers failed to properly obtain permission from applicants before running consumer reports on them. Two companies agreed to multimillion-dollar settlements in those cases earlier this year.

In the Kmart...
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