RELIABLE BACKGROUND SCREENING INDUSTRY NEWS AND ARTICLES

The Franchise Disclosure Document (FDD) is a federal requirement that franchisors must prepare in order to sell franchises. It is a document that requires disclosure to potential franchisees in every state, registration in some states, and filing in some other states. Many hours of time and legal fees are invested in its development. One of the items that is determined during the FDD process is the franchise fee. Each franchisor has their own expectation for what their franchise fee should be. Unfortunately, too often one of the issues that is forgotten is the procedure for vetting a potential franchisee, specifically the franchisee [...]

The “gig economy,” also known as the on-demand economy, typically hires contractors as consumer or business demand necessitates them. The name derives from people working a “gig” or assignment versus regular full-time employment. Gig workers include individuals working in the sharing economy (ride, housing sharing, etc.) to displaced or retired executives who become highly paid consultants. Even though workers in the gig economy are contractors and not traditional “W-2” employees, the need for background checks is still paramount, as the risks to one’s brand, as well as negligent hiring and retention liability remain threats to any company or organization. From the customer [...]

All credit reports provided by the three credit bureaus underwent dramatic change two years ago (July 1, 2017). I first wrote about this in May 2017, Big Changes Coming to Credit Reports, and also in June 2017, Act Before Eviction Judgments Disappear From Credit Reports. This occurred due to a lawsuit settlement that the three credit bureaus (TransUnion, Experian and Equifax) agreed to accept. The enduring impact of this settlement is that public records reported by the three credit bureaus have been drastically diminished and altered. Civil judgments and tax liens no longer appear on any credit report. The only public records [...]

The Fair Credit Reporting Act (FCRA) is the federal law that regulates consumer reports, i.e., background check reports. The FCRA has another purpose – the consumer lending protection law – but this article focuses on its regulations and their impact on background screening reports. The FCRA requires that consumer reports be obtained with proper consumer consent and for a permissible business purpose. Permissible business purposes include the following (and many more): Employee Screening Volunteer Screening Resident/Tenant Screening Franchisee Screening Membership Screening Board of Directors Screening Client Screening Employee screening is the most regulated by the FCRA, and requires different consumer disclosures and [...]