Yes, the Walgreens background check settlement is real

VERIFY often fact-checks settlement notices so our readers know whether they are legitimate or fraudulent. 

Recent social media posts claim some people who applied for jobs at Walgreens will get payments as part of a class action settlement over background checks. A news headline shared in one of the posts says eligible people could receive $918 as part of the settlement. 

THE QUESTION

Is the Walgreens background check settlement real?

THE SOURCES

• Top Class Actions
• Consumer Action, a nonprofit consumer advocacy and education organization
• Court records
• Walgreens background check settlement website

THE ANSWER

Yes, the Walgreens background check settlement is real.

WHAT WE FOUND

Some people who applied for jobs at Walgreens and were denied based on background checks may be eligible to receive up to $918 as part of a class action settlement. 

The settlement benefits people who applied to work at Walgreens and were denied employment based on background checks obtained by the company between March 30, 2020 and May 17, 2022. 

The class action lawsuit alleges that the pharmacy chain violated a federal law called the Fair Credit Reporting Act (FCRA) by sending a disposition email, or a message notifying job applicants that they were disqualified from employment based on the results of their background checks, “too soon after the applicants received a copy of the background check,” the nonprofit organization Consumer Action explains. 

According to the Federal Trade Commission (FTC), the FCRA requires employers to provide applicants with a copy of the background check and inform them of their rights under the law before taking adverse action, which includes not hiring someone.

Walgreens did not admit any wrongdoing but “agreed to pay an undisclosed sum to resolve the FCRA class action lawsuit,” Top Class Actions says. 

Eligible people will automatically receive a $100 payment without filing a claim, according to the official settlement website.

But some people who submit valid claims online by May 23, 2024, could receive additional payments. 

Those who intended to contact Walgreens to explain the circumstances of information in their background check, or would have disputed whether the information was accurate or complete, but did not do so because of the disposition email they received could get another payment of up to $818.28. 

That means some people could receive payments of up to $918.28 as part of the settlement. 

However, if more than 25% of class members submit a valid claim form, the additional payment amount will be reduced, the settlement website FAQs page says. The least amount of money that people will receive in additional payments is $455.34 if all class members submit valid claims, according to the website. 

The final approval hearing for settlement is scheduled for July 23, 2024. If the court approves the settlement, payments could be sent sometime after that date.