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Employers, Are You Up To Date on Current Background Screening Laws?

By: Vanessa Mitchell Tuesday, 19 September 2017

 

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Choice Screening is a CRA (consumer reporting agency) and we perform background screening on applicants and current employees on behalf of their employers. We are bound by the fluctuating regulations as required by not only the FCRA (Fair Credit Reporting Act) but by federal, state, and local directives. You may know all of this information already, but what you don’t know is that you as an employer are subject to a myriad of laws and requirements. We understand that staying informed and remaining compliant can be an arduous task. Which is why, we thought we’d take a moment to inform you on some of your requisites as an employer as well as give you solutions to perform those tasks.

Consent Form

Before a background check can be run, you must first provide information to your prospective employee and/or current employees. Usually, this is done through a consent form. Not only are you informing the applicant/employee of a consumer report, but you are obtaining consent as well. Along with providing the consent form there are forms and summary of rights, and notifications that must be included. Here are some examples:

  • New York State requires your applicant/employee to receive and acknowledge receipt of The New York Correction Law, Article 23-A.
  • Newark, NY requires your applicant/employee to receive and acknowledge receipt of Ordinance #12-1630
  • CA, MN, OK require a checkbox asking if your applicant/employee would like to receive a copy of their background check.
  • CA, MD, CT, HI, IL, WA, OR, VM, CO, and NV have regulations on limited use of credit history in hiring decisions and require a statement to that effect to be provided to the applicant/employee.

Adverse Action

The regulations do not end after the background check is complete. If you plan on taking adverse action on the applicant/employee due to information in the consumer report (i.e. not hiring, firing, anything not in favor of the applicant/employee), then you must notify the applicant/employee of your intention in writing.

Pre-Adverse Action

The Pre-Adverse Action Letter is the first letter you will send to the applicant/employee and the following should be included in that letter:

  • Letter stating intent of adverse action due to the consumer report
  • Copy of the Consumer Report
  • Federal FCRA Summary of Rights
  • Dispute Form
  • NJ and WA State employers must include their state Summary of Rights
  • NY State employers must include another copy of The New York Correction Law, Article 23-A
  • MA State employers must include their background check state approved background screening policy
  • Newark, NY employers must fill out an applicant/employee record consideration form

Post Adverse Action Letter

If the applicant/employee identities inaccuracies on their background check they can dispute the report with the CRA. The CRA will verify the information and make amendments when necessary. Then the applicant/employee has the opportunity to provide the employer with the amended consumer report. If this information is not provided, or if the employer wants to continue with Adverse Action, then the Post Adverse Action letter must be sent to the applicant/employee. Similar to the Pre-Adverse Action Letter, this letter should include:

  • Letter stating adverse action was taken due to the consumer report
  • Copy of the Consumer Report
  • Federal FCRA Summary of Rights
  • Dispute Form
  • NJ and WA State employers must include their state Summary of Rights
  • NY State employers must include another copy of The New York Correction Law, Article 23-A
  • MA State employers must include their background check state approved background screening policy
  • Newark, NY employers must fill out an applicant/employee record consideration form

The Good News

The ever-changing laws make it challenging to stay on top of what constraints you must follow to complete a background check. We make it easy for you. We update our forms and practices proactively as new laws arise so you don’t have to. Not only that, but we have made it convenient for you to access and have given you tools to complete the job in a timely manner.

Choice Screening’s Online Consent Form includes all the required information as stated above. Plus we update it frequently to maintain compliance.

We offer Adverse Action Services and will assist you and your applicant/employee in this process. From sending the initial letter, to handling disputes, ending with post adverse actions letters. We’ve got you covered!

Contact us and start saving your valuable time with Choice Screening Consent Form and Adverse Action Services.

Topics: Adverse Action, Background Check, Best Practices, Compliance, Consent Forms

Vanessa Mitchell

Vanessa Mitchell

Passionate blogger dedicated to making your life easier when it comes to background screening.