Know Your Rights

Five Requirements of Employment Background Checks under the FCRA

Seeing as I have focused my recent blogs on the topic of the Fair Credit Reporting Act ("FCRA") and compliance with the statute when conducting an employment background check, I think it is a good time to provide you with a summary of the requirements of employers when screening applicants.  Below is my list of the five requirements of employers when requesting a background report. 

  1. The employer must provide the employee or job applicant with a written disclosure of its intent to request an investigative consumer report.  This notice must be clearly understood by the employee or applicant.
  2. The employee must give the employer express authorization to obtain a consumer report on the employee or applicant.
  3. After receiving the consumer report, the employer must notify the employee or applicant if it plans to take "adverse action" against the individual based on any information obtained from the report. 
  4. The employer must present the employee or job applicant with an "adverse action" notice explaining that it has based its decision not to continue employment or to hire the employee or applicant based on the information contained in the report and the name and address of the consumer reporting agency used in making this decision. 
  5. After adverse action is taken against the employee or applicant, the employer must provide the individual with "A Summary of Your Rights Under the Fair Credit Reporting Act".

If you have recently applied for a job or promotion and your employer or potential employer has not followed all of the above referenced steps, contact SmithMarco P.C. for a free case review. 

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