Over the last eight weeks we have explored the various ways the FCRA requires compliance for employers. We hope this series has been informational to you. Please contact us and start utilizing our built-in compliance features in the Choice Screening app.
FCRA Compliance
Background Screening requires strict adherence to the Fair Credit Report Act and various other jurisdictional laws and regulations.
The FCRA, in particular, requires employers to follow specific disclosure requirements leading up to the background screen as well as processes after a decision has been made. Ignoring these important provisions can cost employers millions in litigation and settlement.
Choice Screening knows the importance of following these rules and regulations and wants to simplify FCRA compliance for our clients as much as possible.
FCRA Employer Requirements Previous Topics
The Summary of Rights Notice: A Summary of Rights Notice as Required by the FCRA is a summary of the consumer’s rights as it applies to background screening. Consumers must receive a copy of the FCRA Summary of Rights. Additional state and local summaries may be required.
Consent Form: Under the FCRA, employers must get permission to run a background check from the subject of the report before initiating the request. This is accomplished through obtaining a signed Consent Form, also referred to as an Authorization and Disclosure Form.
Adverse Action: If you make a decision that negatively impacts the subject of the background report, based all or in part on the results of the report, you must follow the adverse action process. According to the FCRA, this includes Pre-Adverse Action, Waiting Period, Post-Adverse Action.
Copy of Report: The FCRA ensures the right of a consumer to see a copy of their report when requested; there is no lawful cause to refuse the request. The FCRA uses this provision to encourage transparency. In doing so, it allows the consumer to identify and dispute inaccuracies – regardless of whether these influenced your decision.
Dispute: Any information that is identified as inaccurate can be disputed with the agency running the background check. Similar to providing a copy of the report, there is no lawful cause to deny the subject of the report their right to dispute.
When a dispute is submitted, Choice Screening will verify the information being disputed with the original source. Upon conclusion, you and the applicant or employee will be notified that either the original report was confirmed or that it was updated according to our researcher’s findings.
Security & Privacy: The FCRA obliges users and providers of background reports to ensure adequate security so that personal information about the consumer cannot fall into the wrong hands.
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This communication is intended for Choice Screening's current or prospective clients and partners and may not be forwarded outside of Choice Screening, posted online, or otherwise reprinted in whole or in part.
The information contained in this newsletter is not all encompassing and is meant to be informative only, nor contains legal advice, expressed or implied. Consult with qualified legal counsel in all matters of employment, business, and background screening law.
