Lawsuits allege gig-economy workers fall victim to Checkr’s artificial intelligence

…Since its founding in 2014, Checkr has become a darling of gig-economy giants like Uber and Lyft thanks to the speed of its services. In a press release last April announcing a $100 million influx of cash from investors, the company boasted that it processes more than 1 million background checks each month for more than 10,000 clients.

Around the same time as that announcement, co-founder and CEO Daniel Yanisse appeared on CNBC to describe how Checkr’s use of artificial intelligence to increase speed and accuracy was disrupting the background check industry.

…More than 40 people have sued Checkr for violating the Fair Credit Reporting Act in recent years, according to federal court records, and in December, the company settled a class-action lawsuit alleging that it illegally included information about low-level offenses like traffic infractions on background checks for more than 96,000 people.

Checkr agreed to pay out $4,460,000 in damages plus attorneys fees.


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