Download - 4 Ways to Protect Your Company From Background Check Lawsuits

4 WAYS TO PROTECT YOUR COMPANY

FROM BACKGROUND CHECK LAWSUITS

4 Steps to Background Check Compliance

100Class action

lawsuits

Settlements 3 Large

Companies

14 million dollars

Disclaimer

DISCLAIMER

The information contained in this presentation is forgeneral information purposes only and should not be seenas legal advice. The information is provided by U.S.Information Search and while we endeavor to keep theinformation up to date and correct, we make norepresentations or warranties of any kind, express orimplied, about the completeness, accuracy, reliability, orsuitability of the information. Before making any decisionsyou are advised to seek legal counsel.


Most lawsuits related to background checks have to do with

violations of what is known as the Fair Credit Reporting Act.

(FCRA).

There is a federal FCRA, that comes under the jurisdiction

of the Consumer Financial Protection Bureau and many

states have their own versions of the FCRA.


Step 1Use a “stand-alone”

background check

disclosure and

authorization

Step 3You must provide a Pre-

Adverse action

notification

Step 2

No liability release

Step 4You must provide an

Adverse action

notification

Before the Background Check

Applicant sign a disclosure

and authorization form

Employer gives you a

permission to run the

background check for a

permissible purposes

Step 1 - to Background Check Compliance

The background check disclosure and authorization form must be a

separate document

A big reason for many lawsuits is that companies embed this document

inside of their employment application

The background check authorization and disclosure must be a stand-

alone document

Step 1

Use a “stand-alone” background check

disclosure and authorization


disclosure and authorization cannot have a statement where you are

asking the applicant to sign something that releases you from liability.

You must give the applicant an opportunity to see their report and an

opportunity to dispute it if they feel it is not accurate. Do not simply tell

them they are not hired because of the background check and refuse to

give them a copy.

The FCRA has a specific process know as The Adverse Action Process.

Step 2

No liability release

Provide them with a specific letter that basically says due to what was

found on their background check report, they may not be hired

Provide them with a copy of their report so they can see what was found

Provide them with a document from the Federal trade commission called

your rights under the Fair Credit Reporting Act

Step 3

You must provide a Pre-Adverse Action

Notification.



Step 4 says based on your report we are NOT going to hire you.

The adverse action letter is sent if they do not dispute the results or after

an additional investigation is completed the results stand.

With the Adverse Action Letter send another copy of the report and

another copy of their rights that under the fair credit reporting act.

Step 4

You must provide an Adverse Action

Notification.

What is the

time between

step 3 and

step 4?

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