Postmates Courier Background Check Class Action Lawsuit & Settlement

Primary plaintiffs Arian Nunez, Loretta Nesbitt, and Jamal St. Louis asserted in a class action lawsuit that Postmates rejected all three job applicants after conducting background checks. Postmates gives each applicant a more than 10-page document package that includes paperwork mentioning the background checks. However, the three lead plaintiffs claim Postmates never provided them with copies of the background check results. The plaintiffs charge Postmates with violating the Fair Credit Reporting Act.

In addition to the failure to send results of the background checks, the class action lawsuit also claims the company did not adequately disclose the use of background checks as one of the factors for screening job applicants. Class counsel argued that Postmates should explain the company’s background check policy in addition to making it part of the multiple document package handed out to job applicants. The plaintiffs argued Postmates should have provided a notice of background check legal rights before making the decision to reject the applications.

Earlier in 2017, both parties agreed to settle the class action lawsuit and the parties submitted it for preliminary approval. The terms of the settlement require Postmates to set up a $2.5 million settlement fund that the court distributes to eligible class members. Postmates continues to deny breaking the law, but the company agreed to the class action settlement to avoid the high costs of litigation.

What You Need To Know

According to court documents, eligible class members “include all persons who signed up to work as a Postmates courier and were subject to a background check between July 31, 2013 and May 1, 2016.” Class members separate into two subgroups, with the first subgroup consisting of class members who received unfavorable background check results and were not allowed to work for Postmates between July 31, 2013 and September 24, 2015. The second subgroup covers the remaining class members not part of the first subgroup.

Because San Francisco Superior Court Judge Harold Kahn demanded changes to the settlement before accepting it, class members can dispute any part at the agreement during the final hearing. Court documents also reveal the potential award for each class member is up to $75. The settlement fund will pay the first subgroup three times more than what the class members of the second subgroup receive. Class members of the first subgroup have until October 17, 2017 to submit a valid claim form, while class members in the second subgroup do not have to submit a claim form.

Judge Kahn has scheduled the final hearing for the case Nesbitt, et al. v. Postmates Inc., Case No. CGC15547146, in the Superior Court of the State of California County of San Francisco on January 7, 2018. To learn about class member objections at the final hearing, as well as the list of class and defense attorneys, visit the class action settlement website www.NesbittFCRASettlement.com.