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Standing to sue not guaranteed by federal law in California

January 2023 employment law letter
Authors: 
Danielle Eanet, Eanet, PC

Because a former employee didn’t allege any concrete injury in connection with a claimed informational injury under the federal Fair Credit Reporting Act (FCRA) from an employer’s allegedly inadequate disclosure in obtaining his authorization to get a consumer report, he lacked standing to pursue claims in California courts. The court of appeals also held that alleging a concrete injury was necessary because standing under California law required not only real party-in-interest status under California Code of Civil Procedure (CCP) § 367 but also a beneficial interest, which was a generally applicable requirement. And the FCRA’s damages provision didn’t confer public interest standing within the meaning of case law.

Background

Circle K operates gas stations and convenience stores in California. The former employee worked at a Circle K location for about a month. To gain employment with Circle K, he was required to complete a consent form purporting to authorize the store “to obtain a consumer report verifying [his] background and experience.” He alleged the form violated the FCRA’s “standalone disclosure requirement” and its “clear and conspicuous disclosure requirement.”

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