Late last month, Abdul Mohamed, a driver for Uber, filed a class action suit and alleged that Uber ran background checks on applicants without their knowledge or authorization and used the information to make hiring decisions. Also included in the suit was Uber's wholly owned subsidiary, Rasier LLC and the employment screening agnecy, Hirease LLC.
Mohamed alleged that he went on Uber's website to apply for a different position within the company, as he was already a driver. Part of the online application required Mohamed to complete a "FREE online background check." Although the background check document included an authorization for Uber to access consumer reports, it allegedly did not conspicuously disclose in a separate document that the report may be used to make a hiring decision. If true, this is a violation of the Fair Credit Reporting Act ("FCRA").
Once Mohamed completed the application, he was told he would need a new car for the position. After he bought a car and had worked the new post for a short time, Mohamed got an e-mail that told him he could not have the job, a decision that was based in part upon information Uber obtained through a Consumer Reporting Agency. Although the e-mail claimed Mohamed had already been given a copy of the consumer report, a description of his rights, and an opportunity to dispute the information in the report, Mohamed alleged he never received them.
This will be an interesting case to keep an eye on, as Mohamed alleged that the defendants violated several federal and state laws when the background checks were used.
A copy of the complaint can be found here: http://hr.cch.com/ELD/MohammedUberCompl.pdf
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