In order for an employer to remain compliant with the Fair Credit Reporting Act (FCRA), they must certify in writing to the Consumer Reporting Agency (CRA) that the employee has been given the required notices and has received written authorization from the employee to obtain the background report. The employer must also certify they are requesting and receiving the information solely for the purposes in making an employment decision.
The CRA must obtain prior written consent from the applicant and in cases, if an investigative consumer report is requested, the disclosure must contain specific language regarding the subject’s personal characteristics, mode of living, and job performance.
The disclosure must communicate to the applicant they have a right to receive a copy of their background report in its entirety in state specific areas, regardless if any adverse action is taken. Along with the signed disclosure and Notice of Background Investigation, a Summary of Your Rights Under the FCRA, any state specific releases and compliance forms must also be provided at that time. It is important to note that the disclosure and releases must be “standalone” documents and may not be a part of or attached to their employment application.
If an employer decides not to hire or promote the applicant or employee based on the information contained in the background report, certain steps must be taken:
Learn more about the federal government privacy requirements of the FCRA with the FCRA document.
One out of every six crimes occurs in the workplace and homicide is the second leading cause of workplace death in the U.S.
National Credit Verification Service reports that 25% of the MBA degrees it verifies on resumes are false.
72% of shrinkage is due to employee theft.
34% of all job applications contain lies.
30% of small business failure is caused by employee theft.