NYC Fair Chance Violation Complaint Delivered via FedEx

The consequences of violating employment laws can be significant. Employers can face litigation, leading to big penalties. Macy’s recently experienced this in New York City. Now, FedEx Ground Package System, Inc. (“FedEx”) is accused, in a class action lawsuit, of violating New York City’s Human Rights Law (NYCHRL).

New York City’s Unique Package of Laws

As we previously discussed, the NYCHRL includes the New York City Fair Chance Act (FCA). The FCA places restrictions on how employers can use certain criminal history information and creates obligations and responsibilities for employers in NYC.  We also recently covered changes to the FCA that take effect at the end of July 2021.

Not On Time: FedEx Accused of Screening a Candidate Too Early

A class action complaint was filed on March 12, 2021 claiming FedEx violated the NYCHR, specifically the FCA (Franklin v. FedEx Ground Package System, Inc.).

The complaint states that the Plaintiff completed an online application with FedEx for a position in New York City.  The application process included the Plaintiff giving his consent to a criminal background check and providing FedEx with information it would need to conduct one.  In early December 2020, Plaintiff received a letter confirming that FedEx had been authorized to obtain a criminal background report and provided Plaintiff with a copy of the report.  The letter instructed the Plaintiff to report any inaccuracies to the consumer reporting agency and warned the Plaintiff: “If accurate, the information contained in the Report in whole or in part will significantly affect our decision regarding your potential for employment with FedEx Ground.  We are reviewing your application in light of the attached Report.”

The complaint claims that FedEx violated the FCA when it obtained criminal background reports before extending conditional offers of employment to both the Plaintiff and other applicants.  According to the complaint, FedEx told Plaintiff that it would be reviewing his application in light of the report, “but this is precisely what the [FCA] prohibits it from doing (before a conditional offer of employment is extended)”.  The complaint also alleges that FedEx violated the [FCA] when it stated that the content of the report would significantly influence its decision on whether or not to hire Plaintiff, “because the FCA is clear that a criminal background may influence a hiring decision only in a limited number of situations…”

The lawsuit alleges FedEx violated NYCHRL when the company:

• Declared it would conduct background checks before making conditional offers of employment.
• Conducted background checks before making conditional offers of employment.
• Denied employment based on criminal conviction histories.

The case is still ongoing and the claims against FedEx remain allegations. We will continue to monitor the case and provide updates when available.

Like the Macy’s case, the accusations against FedEx show that even large corporations should stay up-to-date on consumer reporting laws. Employers should work with their trusted legal counsel to make sure they are following the laws that apply to them.