Is Your Company Using The Right Form For Background Checks?

The Consumer Financial Protection Bureau (Bureau) has taken over rulemaking and enforcement responsibilities for the Fair Credit Reporting Act (FCRA) and has updated an important FCRA form that employers must use when utilizing consumer reports in conducting background investigations of prospective and current employees, including criminal background checks. The FCRA is the federal law that imposes a number of obligations on employers who use reports from consumer reporting agencies (CRAs) to conduct background screenings of potential and current employees. If an employer uses such reports as the basis of an adverse employment action, such as terminating or failing to hire an employee, without complying with the FCRA, the employer is subject to liability under the FCRA.