Employers who use third parties to obtain criminal and credit background reports on employees and prospects have to jump through numerous technical hoops in order to comply with the Fair Credit Reporting Act (FCRA). One of those hoops is providing a copy of the “Summary of Your Rights” form to the individual if the company intends to take adverse action based on the results of the background search.
The Consumer Financial Protection Bureau, the government agency responsible for enforcing the FCRA, has recently updated the “Summary of Your Rights” form. The new form can be found here. Employers should start using this updated form immediately. Failure to do so can expose employers to liability and potential class action lawsuits.
And remember, this is only one of the many hoops that employers have to jump through. Employers should consult with qualified employment counsel to ensure that all policies, procedures, and forms regarding background checks are in compliance with the FCRA.