Critical Considerations For Compliance With The FCRA

These days, companies conducting background checks on job applicants have a lot to think about. Most companies are aware of the Fair Credit Reporting Act (FCRA) and FCRA's various state analogs. FCRA, one of a number of federal statutes concerning collection and use of consumer data, specifically governs how and when companies can obtain and use "consumer reports," including background checks and credit reports. Most companies are also aware that the FCRA requires employers, before obtaining a consumer report regarding a job applicant, to provide the applicant with a "clear and conspicuous disclosure" that the employer might obtain such a report. But what constitutes "clear and conspicuous"? And what does it mean for notice to be provided to the job applicant "in a document that consists solely of the disclosure"? This last issue alone has spawned a wave of class-action lawsuits all over the country.