Background Checks and Notice Forms
The Fair Credit Reporting Act (“FCRA”) imposes numerous notice obligations on employers who use third-party companies to conduct background checks on their employees and job applicants. Among other requirements, all job applicants must be informed explicitly: 1) that a background check will be conducted on them; 2) given the opportunity to authorize the check; and 3) advised of their rights under the FCRA with a form entitled “Summary of Your Rights Under the Fair Credit Reporting Act.”
The FCRA also imposes obligations on the companies who actually conduct the background checks for their employer-clients. One such requirement is the obligation to provide employer-clients with a document entitled “Notice to Users of Consumer Reports: Obligations of Users Under the FCRA.”
Ooops – The Government Corrects Its “Model” Forms
If navigating the FCRA’s background check requirements wasn’t already difficult enough, the government agency tasked with preparing several of the “model” background check forms (the Consumer Financial Protection Bureau (“CFPB”)) recently acknowledged that some of those forms contained numerous typographical and other errors. The CFPB has finally corrected those errors and new “model” forms are available here.
This development is particularly noteworthy because January 1, 2013 is the date by which all employers must use the model forms. Fortunately, the CFPB recognizes the confusion caused by its previous errors and has publicly stated that continued use of the error-filled forms past the January 1, 2013 deadline will be acceptable (although the official end of that “grace period” has not been disclosed). Nonetheless, employers who got a jump on the January 1 deadline by already adopting the old and incorrect “model” forms should begin transitioning to the new forms as soon as possible.
For assistance accessing the new forms or understanding the FCRA’s background check requirements in general, please contact Steve Lyman at slyman@wp.hallrender.com or your regular Hall Render attorney.
