February 5, 2024: Written by Christopher Leddy, Esq. & David Frankel, Esq.
Employers performing background checks on applicants and employees are required to comply with the Fair Credit Reporting Act (the “FCRA”). Employers who do not comply with the FCRA are subject to fines and penalties, and non-compliance may preclude taking any adverse actions based on the information learned about an applicant or employee in a background check report.
One requirement of the FCRA is that, before an employer takes an adverse action based on a background check report, the employer is required to provide the “A Summary of Your Rights Under the Fair Credit Reporting Act” form.
By March 20, 2024, Employers must use the most up-to-date form published by the Consumer Financial Protection Bureau. Employers must update their policies and procedures to comply with this new background check requirement.
If you need any assistance regarding this new requirement, please reach out to the Staffing Team at Becker LLC and we will be happy to offer some guidance.