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Employment seekers who applied for a job with Schenker Inc. between Nov. 20, 2014, and Feb. 28, 2022, and for whom Schenker obtained a background check report for employment purposes without authorization may be eligible to claim a cash payment from a class action settlement.
Schenker agreed to pay $1,275,000 to settle a class action lawsuit alleging it failed to provide proper disclosures and obtain proper authorization before conducting background checks on job applicants and employees in violation of the Fair Credit Reporting Act and related California laws.
Who are the class members?
Class members are individuals who applied for employment with Schenker at any time between Nov. 20, 2014, and Feb. 28, 2022, and for whom the company obtained a background check for employment purposes during that period.
The class is nationwide and includes both prospective and former applicants, as well as employees, as long as Schenker procured a background check report for employment purposes within the class period.
How much can class members get?
Each class member will receive an equal, pro rata share of the net settlement fund. The exact amount each person receives depends on the number of participating class members and deductions for fees and costs. The class includes approximately 29,461 people.
No action needed to receive compensation
Class members do not need to submit a claim form to receive their share of the settlement. The settlement administrator will automatically mail payments to the last known address of each qualifying class member.
No documentation necessary
The settlement administrator already has the information needed to identify class members. Class members do not need to provide additional documentation to receive payment.
Payout options
The settlement administrator will mail checks to the last known address of qualifying class members.
The settlement administrator will distribute payments in two rounds. Once the court grants final approval of the settlement and resolves any appeals, the settlement administrator will issue initial checks to all eligible class members. It will redistribute any checks not cashed within 180 days in a second round to class members who cashed their first check. The settlement administrator will donate any remaining funds after the second distribution to the Electronic Privacy Information Center.
$1.28 million settlement fund breakdown
The $1,280,000 settlement fund includes:
- Settlement administration costs: Up to $73,000
- Attorneys’ fees: Up to $425,000
- Attorneys’ expenses: Up to $24,000
- Service award to class representative: Up to $7,500
- Payments to eligible class members: Remainder of the settlement fund
Important dates
- Deadline to opt out: Nov. 20, 2026
- Final approval hearing: Dec. 17, 2026
When is the Schenker payout date?
The settlement administrator will issue payments to eligible class members within 45 days after the court resolves any appeals and grants final approval of the settlement.
Why did this class action settlement happen?
Schenker allegedly obtained background checks on job applicants and employees without providing the required disclosures or obtaining proper authorization in violation of the Fair Credit Reporting Act and related California laws.
The company denied all allegations but agreed to settle to avoid the risk and expense of further litigation.
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