Requesting a Background Check to Make an Employment Decision? Read This First.
Blank Rome Workplace
The Fair Credit Reporting Act (“FCRA”) provides federally-imposed limitations on all employers who seek information from a Consumer Reporting Agency about an applicant or employee for use in making an employment decision, such as a hiring or promotion. The FCRA contains specific notice, authorization, and reporting requirements related to obtaining a Consumer Report, including credit reports and criminal background checks, and potentially taking an adverse employment action based on that information.
Requirements before you request a Consumer Report:
- Notice
- You must provide a stand-alone notice to an applicant or employee about whom you (1) intend to get a Consumer Report; and (2) may use the Consumer Report information to make an employment decision.
- The notice should not be part of (or included on) the job application or any other document.
- The notice must be signed by the applicant or employee before you request the Consumer Report.
- Authorization
- You must obtain an authorization from an applicant or employee that authorizes you and your agents to obtain a Consumer Report.
- Although technically the authorization language can be included as part of the notice form, given the potential to include language that a court may deem inappropriate for the notice, we recommend that you provide a stand-alone authorization form.
- The authorization must be signed by the applicant or employee before you request the Consumer Report.
To read the full blog post, please click here.