U.S. Xpress will pay $2.75 million as part of a settlement stemming from a federal court case over claims that it did not provide required discloses about background checks to those applying for truck driving jobs
Law360.com reports that the case in U.S. District Court for the Eastern District of Tennessee, which was filed in July 2011, still faces court approval. A mediator was brought in after the suit was filed, leading to the settlement.
It was brought by attorneys representing Robert Bell Jr., who alleged the company violated the Fair Credit Reporting Act. Later Bernard Fentress was added to the suit.
They claimed U.S. Xpress violated the Fair Credit Reporting Act in several ways, including failing to provide job applicants with notice of their rights to obtain a free copy of their consumer background report, used by the company in making employment decisions, and failing to get consent from applicants before obtaining those reports.
The plaintiffs were seeking statutory and punitive damages plus attorneys' fees.
U.S Xpress denies any wrongdoing or liability related to the claims. Law360.com reports the company decided to settle to avoid the risks and costs that would have come with continuing to litigate.
Read more about potential pitfalls in background screening in the April issue of HDT.