When Shipt and Checkr Get It Wrong: Your Rights After a Background Check Error

Wrong background check cost you your Shipt opportunity? We know how to fix it!

A single background check error can stop your income before it even starts. For many Shipt drivers, the problem isn’t criminal history or a bad driving record - it’s automation gone wrong. When Checkr, Shipt’s background screening partner, pulls flawed or outdated data, people lose the income they needed, time they can’t replace, and trust in a system that promised opportunity.

If you are one of those people, sadly, you are not alone. Every year, over 40,000 Americans file complaints about inaccurate background checks, according to the Federal Trade Commission (FTC). The Consumer Financial Protection Bureau (CFPB) estimates that 1 in 4 background checks contains an error, and employment-related inaccuracies account for nearly 30% of all Fair Credit Reporting Act (FCRA) complaints, leaving thousands of gig workers wrongly denied or deactivated every month. Checkr, one of the largest players in the gig economy, has faced multiple class-action lawsuits for failing to ensure accuracy and for violating the FCRA - a federal law built precisely to protect you from this kind of harm.

If you’ve been denied, delayed, or deactivated by Shipt because of a Checkr background report, this guide breaks down what’s happening, what your rights are, and what you can do next. In this article, you’ll find out:

• How Shipt and Checkr Background Checks Work
• When Automation Gets It Wrong: Common Checkr Errors
• Understanding the Background Check Notice and What to Do Next
• Your Rights Under the FCRA
• How to Dispute a Wrong Shipt Background Check
• Denied Because of a Background Check Error? We Can Help.

How Shipt and Checkr Background Checks Work

Shipt, the grocery delivery service owned by Target and operating in over 260 U.S. cities, connects thousands of independent “shoppers” with customers who want their groceries delivered fast. To protect customers and ensure reliability, Shipt, like most gig-economy companies, runs background checks on all applicants. But Shipt doesn’t perform these checks itself. It relies on Checkr, a third-party background screening company also used by Uber, Lyft, DoorDash, and Instacart.

What Checkr Looks For

Checkr’s role is to verify your identity and ensure you meet Shipt’s safety standards. Their process includes:

• Verification of Personal and Employment Information: Confirming your name, date of birth, Social Security number, education, and employment history.
• Criminal Record Search: Scouring state, local, and federal criminal databases to identify any disqualifying history.
• Motor Vehicle Report (MVR): Reviewing your driving record for past traffic violations or suspensions.
• Credit Check: In some cases, assessing your financial reliability.

Behind every “instant background check” is a race against time and accuracy. Checkr’s system scans thousands of records from state courts, federal databases, and private archives in seconds. But what it gains in speed, it loses in discernment. There’s no investigator double-checking details or verifying that John A. Doe isn’t confused with John B. Doe. The software often doesn’t see the difference between “dismissed” and “convicted.” To the algorithm, both are just data points.

That’s why even a small error in data matching can trigger a rejection from Shipt. When accuracy becomes secondary to volume - precision, and fairness are often the first casualties.

When Automation Gets It Wrong: Common Checkr Errors

Even small data mismatches can have big consequences. The most common errors we see include:

1. Mixed Files: Another Person’s Record on Yours

Checkr’s automated matching system often confuses people who share similar names or dates of birth. This “mixed file” error can drop someone else’s criminal or driving history into your background report, instantly disqualifying you from work you never should’ve lost.

2. Outdated or Expunged Information

By law, dismissed or non-conviction cases must be removed after seven years, but outdated records frequently appear on Checkr reports. Expunged charges, sealed cases, or dismissed traffic citations may reappear years later, making you look guilty of something that no longer should exist.

3. License or SSN Verification Failures

Shipt drivers have reported being flagged for “suspended licenses” that were actually valid or failing the “SSN Trace” because of internal system mismatches. These system-level mechanical errors have nothing to do with your real record, but they can still cost you your job.

4. Typos and Data Entry Errors:

Even a single misplaced digit in your SSN or a misspelt name can send Checkr searching the wrong databases entirely.

5. No Pre-Adverse Action Notice

If Shipt plans to deny or deactivate you based on your report, you are legally entitled to receive a copy of the report and a written notice before you’re denied. Too often, drivers only find out when they’re locked out of the app, an FCRA violation in itself and a quite severe one if it is actually based on an erroneous report.

6. Incomplete or Unverified Data

Checkr often purchases bulk data instead of directly verifying it with official sources. In one 2023 lawsuit, plaintiffs alleged Checkr’s system “failed to confirm even basic identifiers,” leading to criminal charges being pinned on the wrong people.

Understanding the Background Check Notice and What to Do Next

If Shipt identifies an issue in your background check, they must send you a pre-adverse action notice. This notice should include:

• The reason your eligibility is being questioned,
• A copy of your Checkr background check report, and
• Information on your right to dispute the results.

Review it carefully. Look for:

• Crimes you didn’t commit,
• Traffic infractions that weren’t yours,
• Incorrect driving history or licence status, and
• Any other errors or outdated information.

If you didn’t receive your background check report, you have the right under the FCRA to request a free copy directly from Checkr.

Your Rights Under the Fair Credit Reporting Act (FCRA)

The FCRA is your weapon against careless reporting. It requires background check companies and employers to follow strict rules:

• Accuracy: Reports must be factually correct, complete, and up-to-date.
• Pre-Adverse Action Notice: You must receive a copy of your report before any denial or deactivation.
• Dispute Rights: You have the right to dispute and demand correction within 30 days.
• Accountability: If a reporting agency’s negligence causes harm, you’re entitled to damages.

If Checkr or Shipt ignored any of these obligations, you may have grounds for a federal claim. Compensation may include:

• Lost wages for missed work opportunities
• Emotional distress damages
• Statutory damages up to $1,000 per violation
• Payment of your legal fees by the defendant

Even if Checkr fixes the mistake later, you can still sue for damages caused by the original error.

How to Dispute a Wrong Shipt Background Check

Denied Because of a Background Check Error? We Can Help

When Checkr’s system fails, it’s not just a glitch; it’s a violation of your rights under the FCRA. For Shipt drivers and other gig workers, a background check error isn’t just a line of bad data - it’s a lost paycheck, a damaged reputation, and a door unfairly slammed shut.

At Consumer Attorneys, we step in when technology gets it wrong. Our team helps workers like you:

• Correct false or outdated reports that block employment,
• Recover lost income and emotional damages caused by negligent reporting.
• Hold Checkr and other background screening companies accountable for breaking the law.

You don’t pay anything upfront - the law requires the offending company to cover attorney’s fees. Your rights aren’t suggestions; they’re federal protections meant to ensure that automation doesn’t erase fairness.

The gig economy may run on algorithms, but justice still runs on people, and you have the right to be treated as one. If the Checkr got your record wrong, the law is on your side. You have the right to an accurate report, to know why you were denied, and to fight back when technology fails you.

With Consumer Attorneys, you won’t face it alone. We’ll help you restore your name, reclaim your income, and remind these systems that behind every report is a real person - not just data on a screen.