June 16, 2019

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FTC Issues Another Guide on Background Checks

As we reported in a prior alert, in March of this year, the Federal Trade Commission (“FTC”) issued a short brochure—Background Checks: What Job Applicants and Employees Should Know—on the use of background checks in hiring and personnel decisions. This month, the FTC issued a follow-up guide—Tips for Job Applicants and Employees—that expounds on the agency’s March publication.  Though the two guides are quite similar in form and content, the November publication further specifies the rights of applicants and employees under federal laws such as the Fair Credit Reporting Act (“FCRA”) when an employer runs a background check.

Although the FTC has seen its rulemaking authority under FCRA shift to the new Consumer Financial Protection Bureau, these brochures indicate that the agency has a continued interest in policing employer background checks. Given this sustained scrutiny, employers should review the new FTC guides and make sure that their practices and policies are in compliance with federal law and any state and local equivalents.

© 2019 Proskauer Rose LLP.


About this Author

Katharine H Parker, Labor Employment Attorney, Proskauer Rose Law Firm

Katharine Parker is a Partner in the Labor & Employment Law Department and co-head of the Employment Law Counseling & Training and Government Regulatory Compliance and Relations Groups.

Daniel L Saperstein, Proskauer Law Firm, Labor Employment Attorney

Daniel L. Saperstein is an Associate in the Labor & Employment Law Department, resident in the Newark office. He is a member of the Employment Litigation & Arbitration, Labor-Management Relations, Employment Law Counseling & Training, International Labor & Employment, and Whistleblower & Retaliation Groups, as well as the Dodd-Frank Task Force.