Lawyers for Lyft and Uber, both based in San Francisco, may well be bumping in to each other in court. The same driver is suing both and has accused them of obtaining a background check and credit reports illegally. The action also cites that they failed to adhere to correct authorisation and disclosure procedures.
Both legal actions are near identical and were filed on Monday. The driver who worked for both companies claims the violations followed job applications with the firms. While admitting an authorization document was signed for a background check any authorizations were unclear and buried deep in small print. It is illegal for any company to obtain a background check unless clear disclosure is presented in a separate stand alone document. This falls within the remit of The Fair Credit Reporting Act.
The law suit notes the Federal Trade Commission states a background check disclosure must be separate from an employment application. Owing to language that may make it appear inconspicuous thus relying on the disclosure In a separate stand alone document. A Lyft spokeswoman stated that the legal claim was without merit. Uber offered no response.
The driver’s lawyer seeks class action status on both legal claims. Putting forward that Uber and Lyft routinely, without complying legally, conduct a background check on former, current and prospective employees and use it for hiring purposes.
This claim is the second law suit made against Uber over a background check. A lawsuit last November claimed the driver was fired over the content of a background check. However the cabbie was not offered the opportunity to respond as the Fair Credit Reporting Act allows. The FCRA has spawned numerous lawsuits over recent years and it has become fertile ground for legal action. Common catalysts are lack of compliance over the FCRA disclosure and consent.
Lyft legal complaint here.
Uber legal complaint here.