Since the Fair Credit Reporting Act (“FCRA”) amended the
requirements of
conducting employment background checks in early 2013,
compliance has never been more important. Consumers need to
be cautious that their potential or existing employers are not
violating their rights under the statute and knowing their rights
is the first step to protection.
- Employers must submit written consent from the employee
prior to requesting a copy of the employee’s credit
file. As of January 2013, 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 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 “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 who 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 dispute any inaccurate information
contained in the report directly with the credit reporting.
If you feel an employer has violated your rights under the FCRA,
contact SmithMarco P.C. for a free
case review.