Effective January 1, 2013, employers must revise Summary of
Rights forms they provide to prospective and current employees as
required under the Fair Credit Reporting Act
("FCRA").
The FCRA is a federal law which applies whenever a covered
employer seeks information from a "consumer reporting
agency" regarding an individual's credit, character,
general reputation, personal characteristics, or mode of living. A
"consumer reporting agency" is defined quite broadly
under the FCRA, resulting in an employer being subject to the FCRA
simply by using a third-party vendor to conduct background checks
on any of its applicants/employees.
Pursuant to the FCRA, an employer is required to provide a
disclosure and obtain written authorization from any
applicant/employee prior to conducting a background check. Should
the employer seek to take an "adverse action" against the
applicant/employee based on the background check — which,
for purposes of the FCRA is defined as a denial
