The Fair Credit Reporting Act imposes very stringent disclosure requirements upon the employer when the employer obtains an employee background screening report. The first requirement is that companies cannot perform the background check without the applicant’s consent.
This employee consent cannot be part of the general employment application – it must be a separate and distinct disclosure form whose sole purpose is the employee authorization for the background check. Further the requisite disclosure, “FCRA Summary of Rights” as prescribed by the CFPB (Consumer Financial Protection Bureau) must also be given to the applicant at the time the employee consent is obtained.
Additional employer disclosures are needed if the employer takes an adverse action, based upon the results in the background screening report (referred to as the “consumer report” in the FCRA). Adverse actions under the FCRA include:
- For New Hires: To not hire the applicant
- For Existing Employees: To fire, demote, or not promote the employee
Should an Adverse Action be contemplated or taken, the employer has additional disclosure requirements. Click here to read about those requirements, or click on the magnifying glass below.
Rudy Troisi, President
Reliable Background Screening
Lowering our employee screening standards around the holidays, even for seasonal employees, could be a disaster for your organization, and here is why:
