A series of class-action lawsuits is prompting employers to review their background check disclosure and authorization forms. Employers should take certain precautions to lessen their risks of such legal action. If an employer obtains background check reports from a third party, the employer must comply with the Fair Credit Reporting Act. The FCRA, among other things, requires that employers provide “a clear and conspicuous disclosure” to applicants in writing and “in a document that consists solely of the disclosure.”
The text of the FCRA does not define what it means to be a “document that consists solely of the [required] disclosure.” It does, however, state that the required written authorization from the applicant or employee may be included with the disclosure. Employers may therefore combine the FCRA disclosure with the authorization or consent requirement, but any other information on the form may jeopardize compliance. Employers should always review the FCRA forms provided by their background screening company, because they could be missing required disclosure language or contain extraneous information that could negate compliance.
Lexology (11/12/15) Mark B. Wiletsky Read full article