Employers who use background checks as part of their pre-employment screening should review the documentation they use to communicate screening results.
The Fair Credit Reporting Act (FCRA) requires that employers who use consumer reports to hire, fire, promote, demote or reassign current or prospective employees must follow certain requirements. Consumer reports include pre-employment background checks.
Employers are required to inform job applicants and/or employees and obtain their written consent before obtaining a consumer report. In addition, employees must provide individuals with a Summary of Consumer Rights before taking any adverse employment action, and must notify an affected individual in writing if an adverse action is being taken based on the results of a consumer report.
The Consumer Financial Protection Bureau recently issued regulations that require employers to update forms required by the Fair Credit Reportng Act by January 1, 2013. The changes to the forms are minimal and for the most part require substituting the term "Consumer Financial Protection Bureau" for the "Federal Trade Commission" as the contact for information. Employers should review their pre-employment screening forms to make sure they comply with the FCRA.
