Come January 1, you’ll want to make sure you’ve updated one specific part of your background check process.
HR pros know that when they use a third party to conduct background checks on applicants or employees, there’s certain protocol that has to be followed to avoid running afoul of the Fair Credit Reporting Act (FCRA).
Now, with the enforcement of the FCRA moving from the Fair Trade Commission to the new Consumer Protection Financial Bureau, firms are required to update the forms they use to reflect the change.
The new forms — Appendices F, G and H to 16 CFR part 698 — can be found on the government’s official documents site. The forms now reflect that employees or applicants should reach out to the CPFB for questions regarding their rights under the FCRA.
Katharine Parker and Daniel Saperstein of Proskauer Rose LLP laid out the exact protocol firms must follow to stay in line with the FCRA, which include:
- informing employees or applicants about your intent to do a background check
- obtaining staffers’ or candidates’ advance authorization
- telling applicants or workers in advance if the company plans to take adverse action based on the info from the background check, and
- notifying the affected parties.