Kmart Employment Class Action Settled for $3M

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Washington, DC: A $3m settlement has been reached in the employment class action pending against retailer Kmart. The lawsuit alleges that Kmart violated the Fair Credit Reporting Act (FCRA) by failing to notify job applicants if they were rejected because of a failed background check.

The class includes some 64,50 plaintiffs, all of whom allege they were given insufficient opportunity to dispute negative background reports, when applying for employment at Kmart. The FCRA stipulates that employers must notify applicants if they plan to take an "adverse action,"such as denying employment, based on a credit report or criminal background check. In the employment lawsuit against Kmart, the plaintiffs allege they were rejected as job applicants before Kmart alerted them of red-flagged reports. "Defendants knew or should have known about their legal obligations under the FCRA. These obligations are well-established in the plain language of the FCRA and in the promulgations of the Federal Trade Commission,"the lawsuit states.

The settlement will end the lawsuit entitled Pitt v. K-Mart Corp., Case No. 11-cv-00697, U.S. District Court for the Eastern District of Virginia.

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Reader Comments

Posted by
M. Kirkman
My daughter had an interview scheduled. On the day of interview she received a call (from a male) telling her not to come in because of her mental history and her weight. I called to talk to person over hiring was told she was off. I then asked to talk to the male and was connected with a female. She proceeded to tell me my daughter didn't have an interview and my information was false. My daughter is not a liar. I will NEVER shop at another Kmart.

Posted by
Barbara Mascaro
There is a lot of things Kmart does that's wrong....Failing to give breaks to workers that work over 4 hours, Writing employees up on everything, including forgetting to clock out at the end of their shift, not up-selling enough on Shop your Way rewards and Smart Plans...Cash registers crashing all the time because of very old system...Management never to be seen, and allowing employees to basically run the place...Hiding evidence against employees who've been injured in their store...Managers siding with employees against other employees....Testing employees all through their length of employment...Telling employees that they must give two weeks notice before taking a day off and then only giving them their schedule for 1 week...The list is basically endless...Something needs to be done...the poorest run company I've ever worked for!

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