Uber reaches $7.5 million settlement over driver background checks

Under the Fair Credit Reporting Act (FCRA), a federal law that regulates background checks in the U.S., employers using third-party background check firms are required to give prior notice and disclosure to, and receive written consent from, subjects of background checks. This is not the first background check lawsuit Uber have faced. In fact, they’ve paid out tens of millions of dollars over the last few years. In February, the company said it will pay $28.5 million to resolve claims it misled consumers about its “safe rides fee” and the quality of its driver background checks. In April, a similar suit filed by Los Angeles and San Francisco counties was settled for $10 million, with Uber promising to pay an additional $15 million if it doesn’t meet the terms of the settlement over the next two years. Later that month, Uber Inc. said it settled two closely watched class actions with its drivers in California and Massachusetts for as much as $100 million, agreeing that the drivers will remain classified as independent contractors rather than employees. If approved, this deal would end consolidated claims brought by drivers who had their accounts deactivated or were denied employment due to the results of background checks that they didn’t receive advance notice of or otherwise authorize.]]>