Employers conducting background checks on their applicants or employees must comply with the Fair Credit Reporting Act (“FCRA”). The FCRA requires, among other things, that employers provide applicants or employees with certain disclosures and obtain authorization prior to obtaining background checks on them; provide additional disclosures prior to taking any adverse action against an applicant or employee on the basis of a background check; and if the employer moves ahead with such an adverse action, provide additional disclosures to the applicant or employee following the adverse action. Among the disclosures and notices that an employer may have to provide to applicants or employees to comply with the FCRA is a form called “A Summary of Your Rights Under the Fair Credit Reporting Act,” which is issued and periodically updated by the Consumer Financial Protection Bureau (“CFPB”). In March of 2023, the CFPB updated its Summary of Rights form, which can be accessed here. For more details on how to comply with the FCRA’s requirements, please click here for an in-depth explanation by Alicia Koepke.
