Employers who use outside agencies to conduct background checks must use the new “A summary of your Rights Under the Fair Credit Reporting Act” Form. This was effective on September 21, 2018, and is one of the notices that employers must provide under the Fair Credit Reporting Act. This is in response to the Economic Growth, Regulatory Relief, and Consumer Protection Act signed in May 2018, which requires nationwide consumer reporting agencies to provide ‘national security freezes,’ free of charge to consumers.
The new form, which is available in both English and Spanish, adds information which details the individual’s right to place a ‘security freeze’ on his/her background information. Additionally, it advises of the alternative right to place a ‘fraud alert’ on his/her credit file, all at no cost to the individual.
Before you run a background check, we encourage you to have your procedures reviewed by one of our attorneys, or connect with our partner TopDogHR, who issue industry leading background solutions.