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When employers engage a third party company to conduct employment background checks the first question that should be asked by the vendor, what is your permissible purpose for pulling these reports? The only logical answer is for employment purposes, however employers also feel that they can “double dip” if you will and use the reports for other reasons.
Once you engage the services of a background screening company the first thing they should provide you with is the Notice to Users of Consumer Reports: Obligation of Users Under the FCRA. The notice spells out obligations that the employer has when conducting employment background checks.
Employers Obligations are:
1. Have a “permissible purpose” for requesting a consumer report from a consumer reporting agency (i.e. hiring, promotion, retention, or reassignment) essentially the permissible purpose is employment. Employers must certify to their background screening company the permissible purpose before furnishing the consumer report. Majority of background screening companies will receive this certification in their end-user service agreement.
2. Employers must provide certain notices and disclosures to a job applicant or employee, (i) prior to requesting a screening report; (ii) when information in the report could potentially affect eligibility for employment; and (iii) if adverse action will be taken due to the results of the background check.
3. Provide a notice pertaining to the background investigation, and receive written consent from the subject of the background screening report.
4. Properly dispose of these reports, including burning, pulverizing, shredding or electronically purging information.
Employers must also adhere to the Fair Credit Reporting Act (FCRA) which has additional requirements when employers use reports for employment screening services.
Employers must also adhere to the Fair Credit Reporting Act (FCRA) which has additional requirements when employers use reports for employment screening services.
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