The Federal Trade Commission (“FTC”) recently issued guidance discussing certain disclosure and authorization requirements that employers must satisfy prior to obtaining background screening reports for prospective employees. If your company obtains background information to screen prospective employees, now is a good time to make sure you are complying with the Fair Credit Reporting Act (“FCRA”).
Under the FCRA, background screening reports are either “consumer reports” or “investigative consumer reports” when they are used for employment purposes and include information bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. Notably, the definition of “consumer report” also includes oral or other communications, and is not limited to written communications.
If your business uses background screening reports to assist with hiring decisions, remember, the FCRA requires the following steps: FULL ARTICLE