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Learn the latest trends in employment background checks. This report uses real-life usage data to uncover how employers are screening across industries.
Verified Credentials is a leading background screening company. Since 1984, we’ve helped validate and secure relationships through the use of our comprehensive screening solutions. We offer a wide variety of background checks, verifications, and innovative screening tools.
Our accreditation confirms that our policies, processes, and employee training meet rigorous industry compliance standards.
1 min read
Verified Credentials Sep 13, 2019 12:00:00 AM
The requirements and obligations of the Fair Credit Reporting Act (FCRA) can be challenging to navigate, even for the most seasoned employer. Any employer that uses a professional background screening company like Verified Credentials to get a background report (called a “Consumer Report” under the FCRA) on applicants or employees is likely subject to the FCRA.
One of the most confusing, and litigated, requirements for employers under the FCRA are the Disclosure and Authorization requirements. Per the FCRA, before obtaining a Consumer Report for employment purposes, the employer is supposed to:
The meaning of the terms clear and conspicuous are undefined in the FCRA – and have been the subject of many debates (and lawsuits!). What may be clear to an HR-professional may be undecipherable to the average applicant/employee. Likewise, whether a disclosure document consists solely of the disclosure has also been under a spotlight.
The Federal Trade Commission (FTC), one of the federal consumer protection agencies tasked with enforcing the FCRA, has never provided a sample Disclosure or Authorization form for employers to use. However, the agency has provided hints to help employers stay compliant with the FCRA. In an FTC blog post from April 2017, the agency provided some pointers on what not to put in a disclosure document:
For the full FTC blog-post, click here: Background Checks on Prospective Employees: Keep Required Disclosures Simple
Of course, this post is just intended to help you think critically about your obligations under the FCRA. You should always discuss your background screening program – and any forms, disclosures, authorizations or notices – with your legal counsel, to ensure you remain compliant with all laws related to background screening.
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