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Employers who conduct background checks on applicants or employees must comply with the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq. Among other things, the FCRA requires employers who procure criminal background reports (“consumer reports”) to provide applicants and employees with a Summary of Rights form as prepared by the Consumer Financial Protection Bureau (CFPB) when providing them with the FCRA-required pre-adverse action notices. See 15 U.S.C. § 1681b(b)(3)(A)(ii).
Continue Reading Compliance Update for U.S. Employers Conducting Criminal Background Checks in the Hiring Process

On November 22, 2019, the federal Consumer Financial Protection Bureau filed a complaint in the U.S. District Court for the Southern District of New York against Sterling Infosystems, Inc. regarding allegations that it violated the Fair Credit Reporting Act in providing criminal background checks to employers.  Sterling is a “consumer reporting agency” as defined by the FCRA, which provides background check results to employers when requested.
Continue Reading Background Check Vendors Beware: the CFPB’s Authority to Enforce the FCRA Applies to You Too

The Consumer Financial Protection Bureau issued a new “A Summary of Your Rights Under the Fair Credit Reporting Act” form on September 12, 2018.  This form replaces the previous version issued on November 12, 2012, and is expected to be implemented by employers on September 21, 2018.
Continue Reading New Compliance Requirements for FCRA Background Checks