New FCRA Form Required for Background Searches in 2013

There is a new form in town for employers who obtain background reports on applicants and employees. Employers who use third parties to conduct background reports are familiar with the requirements of the Fair Credit Reporting Act, including the requirement of providing a copy of the Summary of Rights Under the Fair Credit Reporting Act as part of the process.

You may not know, however, that the Summary of Rights form has changed -- not once, but twice, in the last year. In December 2011, the Bureau of Consumer Financial Protection – the governmental bureau that has assumed responsibility from the Federal Trade Commission for the FCRA – issued interim final rules that included a revised Summary of Rights Under the Fair Credit Reporting Act. In November 2012, the Bureau realized that its new Summary of Rights form contained errors – so it issued a corrected form. To alleviate any confusion, the Bureau published a clarification, explaining that employers should use the corrected form which can be accessed by clicking here.  Employers should use this new form beginning immediately.

Employers who use third parties for their background reports may also notice that their background search service providers are using new forms – namely the Notice to Users of Consumer Reports: Obligations of Users Under the FCRA and the Notice to Furnishers of Information: Obligations of Furnishers Under the FCRA. For reference, these forms are also available through the same link.

For questions about employee background checks, including the FCRA requirements and EEOC guidance on such checks, please contact a member of the BABC Labor and Employment Group.