Costco Employee Background Check Class Action Settlement

Class Eligibility

You are part of the Settlement if you applied for U.S. employment with Costco at any time from August 10, 2014, through April 17, 2017, authorized a background report, and Costco conducted a background check about you. Plaintiff alleges that Costco, to obtain background reports on job applicants, used a disclosure form that was not a stand-alone form (as the FCRA requires), but that instead contained additional information not permitted by law. If you were among the 1,510 individuals who were denied employment after review of your background report, you are considered one of the Class Members Entitled to Autopay, which means that you will get paid automatically, so long as you do not opt out of the class or object to this Settlement. If you instead were hired by Costco, you are not one of the Class Members Entitled to Autopay and, to receive a payment, you must submit a Claim Form alleging that you were harmed by the Challenged Disclosure Form.

Estimated Amount

$25 to $400

The amount you receive will depend on the number of qualified claims

Proof of Purchase


Case Name

Terrell v. Costco Wholesale Corporation,
Case No. 16-2-19140-1 SEA

Washington Superior Court in and for King County

Case Summary

The Plaintiff alleges that Costco violated the Fair Credit Reporting Act (“FCRA”) when it obtained a background reports on job applicants by using a disclosure form that allegedly was not a stand-alone form as required by the FCRA. Plaintiff alleges that the use of an allegedly non-compliant disclosure form (the “Challenged Disclosure Form”) caused him harm and violated the law.

Settlement Pool





Terrell v. Costco Wholesale Corporation

c/o JND Legal Administration

PO Box 91348

Seattle, WA 98111