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April 16, 2014

Updated Notice of Rights Form Required for Employers Who Conduct and Use Background Checks

By January 13, 2013, employers who obtain consumer reports (i.e., background reports) from consumer reporting agencies must replace the Summary of Rights form they provide to applicants/employees with a new version of the form.

The Fair Credit Reporting Act requires employers who request a consumer report to do the following:

  • Disclose to the applicant/employee that such a report may be obtained.
  • Receive written permission to obtain the report. The consent must be a stand-alone document, not merely a paragraph at the bottom of an application or other document.
  • If the employer is considering taking on adverse action against the applicant/employee based on the report, it must provide the individual with a “pre-adverse action” notice, a copy of the consumer report(s) and a copy of the FCRA Summary of Rights. It is this Summary of Rights that must be updated by January 13, 2013.
  • If the employer decides to take the adverse action, it must provide the individual with a formal “adverse action” notice.

Similarly, employers who seek “investigative consumer reports” must do the above, but they must also enclose the Summary of Rights form with the standard disclosures and inform the applicant/employee of his or her right to request additional information about the “nature and scope” of the investigation.

Employers may obtain copies of the new Summary of Rights form at http://www.employeescreen.com/university/wp-content/uploads/Summary-of-Your-Rights-20130101.pdf.

© 2014 Vedder Price

About the Author

Associate

Emily T. Fess is an Associate in the firm’s Labor and Employment practice area.

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About the Author

Shareholder

Jonathan A. Wexler is a shareholder at Vedder Price and a member of the firm’s Labor and Employment Practice Area of the New York office. He represents private-sector, not-for-profit, and public-sector clients in litigation matters in federal and state courts, and before such administrative agencies as the Equal Employment Opportunity Commission, the New York State Division of Human Rights, the National Labor Relations Board, and the New York Department of Labor.

Mr. Wexler has arbitrated statutory claims as well as grievances under collective...

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