In November, a proposed class action lawsuit was filed against The Walt Disney Company alleging the company's candidate screening process violated state and federal law. The plaintiff alleges that Disney relied on a background check obtained through a third-party agency in deciding to rescind his offer of employment, but never provided him legally-required notice of adverse action or access to the report. The background report inaccurately reflected a criminal conviction in 2010; in fact, the conviction occurred in 1998 and was expunged in 2010. The plaintiff alleges that he attempted to explain the situation to Disney to no avail. After contacting the third-party agency, the plaintiff corrected the report, but was never hired by Disney. The plaintiff alleges that Disney's practice violated not only federal and state law governing background checks, but also state law prohibiting consideration of certain arrest records. Whether the plaintiff's claims will succeed—individually or on a class basis—remains to be seen, but the lawsuit serves as a cautionary example of the importance of complying with the technical legal requirements governing background checks.
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