Are you using a stand-alone disclosure and proper consent form when screening prospective employees?
The Fair Credit Report Act (FCRA) has specific requirements concerning disclosure and authorization forms prior to screening prospective employees. Failing to follow the criteria can lead to litigation.
Specifically, 15 U.S.C. § 1681b(b)(2)(A)(i) and (ii), require:
Except as provided in subparagraph (B), a person may not procure a consumer report, or cause a consumer report to be procured, for employment purposes with respect to any consumer, unless–
- a clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes;
- the consumer has authorized in writing (which authorization may be made on the document referred to in clause (i)) the procurement of the report by that person.
The Federal Trade Commission also provided some guidance on Background checks for prospective employees.
Case in point is a recent FCRA class action filing against Standford University – and it is not the first time the institution has had a similar claim against them.
SelectHire, OPENonline’s full service screening solution can help. Please contact us for more information.
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This is not legal advice, for legal advice please seek legal counsel.