Employment Client Alert: Fair Credit Reporting Act Notice Changes to be Implemented Shortly
The Consumer Financial Protection Bureau (CFPB) has promulgated revisions to various forms required by the Fair Credit Reporting Act (FCRA) in the context of background checks. A creation of the Dodd-Frank Act, the CFPB is taking over responsibility for the FCRA from the Federal Trade Commission, and the new forms reflect the agency’s contact and website information. The regulations require the new forms to be used beginning January 1, 2013.
The FCRA is triggered any time a background check is conducted by a third-party agency. Employers conducting background checks in conjunction with the hiring process must ensure that applicants consent to the background check in an acknowledgment form solely dedicated to that purpose. If information in the background check might disqualify the applicant, the applicant must be notified of his or rights to dispute or explain information from the background report. The new form for this is available here at Appendix K. Additional language is required in the unusual event that a credit score would be used in a hiring decision.
Please feel free to contact an attorney in the Employment Law Group for further guidance regarding your obligations when conducting a background check for hiring purposes.
Josh is an associate in the firm's Employment Law Group, where he represents management and employers in all aspects of labor and employment law and in employment litigation matters before federal and state courts and administrative agencies, including the Department of Labor, the Equal Employment Opportunity Commission, and the unemployment and workers' compensation agencies of various states. Josh also counsels employers on issues related to employee discipline and termination, workplace harassment, and compliance with federal and state employment laws.
