Costco Wholesale runs background checks on applicants, but what happens if you are rejected? If you just ignore it, you may keep having the same problem because false information or errors may stay on your report. You have legal rights under the Fair Credit Reporting Act (FCRA) to fix those mistakes or even sue for damages.
Does Costco Perform Background Checks?
Yes , Costco Wholesale requires background checks for all U.S. applicants. But aside from a simple statement accompanying the application advising jobseekers that it does “perform previous employer reference checks and background checks, when appropriate under state statutes,” the company does not shed much light on the process.
According to a startwire.com post , however, Costco’s background check includes your criminal history (if any), motor vehicle/driving history and any other relevant information as part of the employment screening process. You must also provide your Social Security Number to facilitate this process.
Because the background check required by Costco Wholesale is conducted for employment purposes, you have certain rights Under the Fair Credit Reporting Act (FCRA). These are: the right to be told if information from a background check has been used against you; the right to know the contents of the background check report; and the right to dispute inaccurate or outdated information.
Although state laws vary, you should be aware that federal law excludes information about arrests that occurred more than seven years ago from background check reports.The only exception to this is rule is if the annual salary for the position you are seeking is more than $75,000. There is no time limit for conviction records.
You should also be aware that if Costco Wholesale uses another company to run background checks, it must have your written consent first.
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Costco and Big Retail
Founded as “Price Club” in 1976 , Costco Wholesale is now a self-described “a multi-billion dollar global retailer.” As such it has warehouse club operations in eight countries, all of which feature brand-name merchandise at reasonable prices. It does so by limiting costs and passing the savings to its members. At the same time, Costco says it takes pride in paying its employees fairly and providing comprehensive benefits.
Benefits of Working At Costco
Costco Wholesale offers dozens of employment opportunities at its warehouses/stores; call centers; depots; corporate offices; and business delivery and business centers. Most of the entry-level positions are at the warehouses/stores, and range from cashiers and cashier assistants to food service and membership assistants.
All employees can qualify for benefits including healthcare coverage, life and disability insurance, and retirement savings plans.
How Do I Qualify To Work For Costco?
In addition to being able to pass the background and drug tests, you must be at least 18 to work at Costco Wholesale. Additional requirements will depend on the type of position you are applying for. In general, however, you should also have certain intangible qualities , such as the ability to multitask, the willingness to work hard, and have a positive attitude.
And they’ll also run a background check on you….
What are my Background Check Disclosure and Consent Rights?
You have a right to know if an employer will use information from a background check against you and an employer cannot obtain background check information without your express written consent.
A background check company cannot hand over your information to an employer unless the employer certifies that: (1) it has “clearly and conspicuously” disclosed to you in a separate document that it may obtain a background check; (2) you have authorized it to get the background check; and (3) it will provide you with advance notice of any adverse action based in any part on the background check report, a copy of the report, and a summary of your rights under the FCRA.
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Costco Background Check Complaints
Last year, Costco Wholesale agreed to settle a class action lawsuit alleging that wrongfully obtained background reports about and accordingly denied employment to job applicants between August 10, 2014 and April 17, 2017 . Specifically, the suit alleged that the company did not use proper disclosure forms as required under the FCRA, adversely affecting at least 1,510 applicants. Although it denied any wrongdoing,
Costco Wholesale agreed to settle the suit for nearly $2.5 million.
You Received A Pre-Adverse Action Notice From Costco. What Are Your Legal Rights?
By law, anyone who uses the information in a background check report to screen job applicants must let any applicant know when they didn’t get the based on the information in the report.
This means you have a right to see what is in the background check. Depending on your specific circumstances, you may also be able to sue the company that requested the background check and rejected your application, or the company that issued the background check report
Your Right to an Accurate and Legally-Compliant Report From Costco
A background check company must take reasonable steps to ensure its report is as accurate as possible.
The FCRA also puts limits on the negative information a background check report can include. A report cannot list civil suits, judgments, arrest records, paid tax liens, accounts in collection or most other negative information (except criminal convictions) after 7 years, or bankruptcies after 10 years. It also cannot list expunged convictions
Your Right to Dispute an Unfair Background Check Report from Costco
If you don’t get a job because of information on your background check report, you are entitled to a copy of the report. You also have the right to dispute the report if it has errors or includes information it shouldn’t.
If you dispute your report, the background check company must investigate and correct any errors within 30 days.
Were You Harmed By False Information or Errors In Your Costco Background Check Report?
Often, whether you get hired or promoted depends on the information gleaned from an employment background check. A background check can come in many shapes and sizes. It may be as simple as verifying your social security number. Or it may include a detailed report of your credit and criminal history, or even information gathered from interviews of your friends and neighbors about your character and reputation.
Whatever the scope of the background check, the FCRA sets strict standards for how employers background check companies get consent for and conduct background checks, and what they can do with the information they find.
If a background check commissioned by Costco fails to meet those standards, the FCRA affords you a number of rights.
Your Right to File A Lawsuit Against Costco if your report includes inaccurate or illegal info
If you lost out on a Costco job or were suspended or fired because a background check report included inaccurate or illegal information, you may be able to sue in federal court. If you sue and win, you may be entitled to your actual damages or statutory damages up to $1,000, plus punitive damages, attorneys’ fees, and court costs.
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If you’re ready to assert your rights and fight incorrect information in your background check, we can help you get justice. Complete our form for a FREE case evaluation, or call 844-685-9200 NOW.
About the Author:
Sergei Lemberg is an attorney focusing on consumer law, class actions related to automotive issues, and personal injury litigation. With nearly two decades of experience, his areas of practice include Lemon Law (vehicle defects), Debt Collection Harassment, TCPA (illegal robocalls and texts), Fair Credit Reporting Act, Overtime claims, Personal Injury cases, and Class Actions. He has consistently been recognized as the nation's "most active consumer attorney." In 2020, Mr. Lemberg represented Noah Duguid before the United States Supreme Court in the landmark case Duguid v. Facebook. He is also the author of "Defanging Debt Collectors," a guide that empowers consumers to fight back against debt collectors and prevail, as well as "Lemon Law 101: The Laws That Lemon Dealers Don't Want You to Know."
