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$1.75M Preliminary Settlement Reached In Chuck E. Cheese Background Check Class Action Lawsuit

This is a settlement for the Employment lawsuit.

Los Angeles, CA: A preliminary $1.75 million settlement has been approved in a employment class action lawsuit alleging Chuck E. Cheese violated the Fair Credit Reporting Act (FACTA) by performing background checks on job applicants without clear disclosure of the fact.

Specifically, the plaintiffs alleged that Ford v. CEC Entertainment, Inc. d/b/a Chuck E. Cheese, informed applicants that a background check would be obtained through a disclosure form that contained extraneous, impermissible information.

According to the Act, employers are required to provide applicants with a clear and conspicuous disclosure, consisting solely of the disclosure, that a background check will be obtained. The plaintiffs claimed that Chuck E. Cheese allegedly violated that stipulation by embedding the disclosure within the employment application, including a provision in the disclosure regarding the meaning of "at-will"employment, incorporating a certification in the disclosure that the application materials were correct and complete, and including a liability release.

According to the settlement documents, some 28,000 class members may be eligible for the settlement, which, if granted final approval, would include automatic payments of approximately $38 to each class member: an incentive award to the class representative of up to $5,000 and attorneys' fees.

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Published on Jul-29-15


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