If, as an employer, you have ever used, or ever plan to use a Credit Reporting Agency, also known as, a background screening company, then this is something you need to pay attention to.
Background screens are credit reports
Under the Fair Credit Reporting Act, a background check has the same restrictions as does a credit check. If you use them and decide not to hire someone as a result of the information revealed you have an obligation to inform the individual of their rights before this adverse action is taken. (More information can be found here in this post Background Checks and the Fair Credit Reporting Act) According to attorney Russell Samson, of the firm Dickinson, Mackaman, Tyler & Hagen, P.C., a new form has been created to inform applicants of their rights prior to employers taking adverse action, such as not hiring them. Samson says “One of those requirements is that prior to making a final “adverse action” decision, the employer must give the applicant or employee notice in advance, including a copy of the “consumer report” and a written description of consumer rights.”
Get a supply
Samson reminds us that:
Most critically, the employer should make certain that if it is providing the Summary in conjunction with an employment action – even in a situation where the law does not require the Summary to be provided — it is providing the correct, most current version. It is the “person intending to take such adverse action” – the employer – that has the obligation to provide the consumer with the summary.
He suggests that an employer print off a supply of these forms and make sure they are appropriately used when needed. Don’t get sued for using an outdated form. The form can be found here in .pdf or here in Word.