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How To Dispute Employment Background Report Errors

When thinking of the Fair Credit Reporting Act (FCRA) and credit report errors, many do not realize that the FCRA covers a much broader range of reports than only credit reports from agencies such as TransUnion, Experian and Equifax. The FCRA also protects consumers against erroneous reports such as consumer reports that are sold to employers. These reports are used to screen an employee or potential hire in many industries.

Thus, a background check report for employment that is inaccurate and results in termination or failure to gain employment might actually be a violation of your rights under the FCRA. For help detecting and correcting errors in a background check for employment, turn to SmithMarco, P.C.

We are experienced and knowledgeable credit law attorneys who can help you dispute an incorrect background or employment check. If part of the interview process requires a background check, or if your continued employment with a company depends upon a background check, you have rights under the FCRA.

About False Employment Reports And Applicants’ Or Employees’ Rights

Background screening or employment reports are used by almost all types of industries and are considered consumer reports or credit reports under the FCRA. The law regulates the companies that sell the reports in addition to the employers that use them.

Since the FCRA amended the requirements for conducting employee background checks in early 2013, compliance has never been more important. Consumers should be cautious and aware of whether or not their potential or existing employers are violating their rights under the statute.

Knowing your rights as a consumer is the best preventative action to take to ensure your protection from false employment reports. Specific consumer rights regarding background checks are summarized below.

Employers must submit written consent from the employee prior to requesting a copy of the employee’s credit file

The FCRA requires that anytime an employer requests a copy of an employee’s credit file for the purpose of a background check, the employer must provide proof of consent from the employee. Such authorization must clearly show that the employee understands the information requested will be used for the purpose of making employment decisions.

Employers must disclose their intention to conduct a background check

The employee must be aware of the employer’s intention to conduct a background check and the disclosure must include a statement regarding the type of background check to be conducted, what information will be gathered during the process and how the information will be utilized. This document must be identical to the document presented to the credit reporting agency when requesting the employee’s information.

Employers must follow protocol prior to taking adverse action against an employee

Should the employer receive the information contained in the report requiring them to take adverse action against the employee, prior to taking this action, the employee must be presented with a copy of the information received from the credit reporting agency along with a copy of the “Summary of Your Rights Under the FCRA.”

Employers must follow protocol when taking adverse action against an employee

If an employer takes adverse action against an employee, the employer must provide an “Adverse Action Letter.” This letter must include the name, address and telephone number of the credit reporting agency that provided the report; a statement declaring the credit reporting agency is not responsible for the adverse action taken against the employee and that it is not able to provide a reason for the adverse action; a statement that the employee has the right to obtain a copy of the same credit report by making a request within 60 days of the adverse action; and a statement that the employee has the right to dispute any inaccurate information contained in the report directly with the credit reporting.

Frequently Asked Questions About Employment Reports

Bring your own questions, such as the following, to our attention.

Where does my employment report come from?

Some of the largest consumer reporting agencies that handle employment reports are Checkr, HireRight, Sterling Infosystems, First Advantage, Accurate Background, Certiphi Screening, InfoMart and Safety Holdings.

Since employment background checks have become a major factor in the employment field, companies like Equifax Workforce Solutions (EWS), a subsidiary of the credit bureau Equifax, have been established for the sole purpose of verifying the employment history and income information of applicants.

EWS is a separate business from the credit bureau and claims accuracy of its data as each consumer’s information is maintained by the employer who provides it to EWS, and it is not distributed to any other background checking company. The service was created to assist employers in requesting salary and employment history information of job applicants.

EWS states it is in compliance with the FCRA and that it provides your personal information only to those requesting it with a legitimate purpose and the consumer’s written consent.

Can I request my employment report?

Unfortunately, unlike with credit reporting agencies, there are no websites set up for you to obtain a free copy of the information reporting on your salary and employment history, but you can however go to each of these companies and request a copy of your information. The report will likely include all employment records the company has on file for you and will report any companies that have requested your data over the last two years.

We are lawyers with more than 30 combined years of experience practicing law to protect the rights of consumers around the country, handling Fair Credit Reporting Act cases. If you feel that your rights have been violated and you are a subject of an inaccurate or false employment report, please contact SmithMarco, P.C., for a free case review.

What is an adverse action notice?

The FCRA requires that before taking any adverse action against a consumer, such as not hiring the consumer or termination if the background check is completed after hiring, the employer must provide certain information to the consumer. This notice is often referred to as an “adverse action notice.” An adverse action notice advises a person that a decision was made regarding his or her employment (or credit or insurance) based on the information contained within a credit or consumer report. A proper notice advises the consumer of the name of the consumer reporting agency that provided the report, its contact information and a statement that provides information on how to obtain a copy of that report.

What is the purpose of an adverse action notice?

The purpose of an adverse action note is to provide a consumer the right to see the information and correct it in the event the report is inaccurate or incomplete. That can happen, for example, if a consumer is the victim of identity theft and a crime is committed in his or her name or if a court record is inaccurate. The consumer then has an opportunity to set the record straight.

How can I respond to an adverse action notice?

Our attorneys have seen circumstances wherein a consumer report on an individual stated that the person was previously convicted of a felony. However, the crime committed was a simple misdemeanor, and the person’s penalty was minor. Having a felony record obviously paints a very different picture of the applicant.

What about disclosure of background checks and releases of liability?

The FCRA also regulates the disclosure of information to a consumer that a background check will be performed and the need for written authorization, including a specific requirement that the disclosure be “in a document that consists solely of the disclosure.” Many times the disclosure will contain a release of liability that purports to release the employer as well as any provider of information from any liability, claims or causes of action related to the information obtained. Any disclosure that contains a release of liability must be a “stand-alone” document. This means as the word states, the document must be a separate document and apart from all other information provided at the time of the application.

The FCRA allows any potential employer to gain access to a credit report of an applicant, so refusing to sign such an authorization would not be in an applicant’s best interests. Once that report is viewed and if it contains false information that prevents a person from getting employment, the FCRA protects consumers.

Speak With An Employment Background Check Error Attorney

Our law firm’s employment background check error attorneys work with clients the Chicago metro area, Florida and nationwide. Feel free to contact us from anywhere in the country. Please contact SmithMarco, P.C., if you feel your rights have been violated. Call 888-915-0836 or email us for a free case review today.