Federal
law imposes several duties on users of background
screening reports.
Section 604 of the Fair Credit Reporting Active - 15 USC §1681 et seq - (FCRA),
requires that:
* A User of a
Consumer Report (background check) for Employment purposes, before taking Adverse Action
based in whole or in part on the contents of the report, provide to the consumer
(applicant or employee) to whom the report relates:
- A copy of the report;
and
- A description in
writing of the rights of the consumer as prescribed by the Federal Trade
Commission (FTC).
-
FTC
Summary of Rights - click on this link to download a copy of the FTC
Summary of Rights (available on Moco's web site).
* Any person who
takes Adverse Actions based in whole or in part on information contained in a
Consumer Report (background check) must after the action is taken:
- Provide oral, written
or electronic notice of the Adverse Action to the consumer; and
- Provide orally, in
writing, or electronically the name, address and telephone number of the
Consumer Reporting Agency that furnished the report - including a statement that
the Consumer Reporting Agency did not make the decision to take the Adverse
Action and, therefore, is unable to provide the Consumer with specific reasons
why the Adverse Action was taken.
-
Adverse Action Notice
(Employment) - click on this link to download a standard Adverse
Action Notice (available on Moco's web site) which addresses both requirements.
State law often includes similar requirements. So a failure to comply by
users of pre-employment screening reports may form
the basis of regulatory or legal action at both state and federal levels.
It
is hard to argue with the notion that prospective employees (applicants) should
have an opportunity to dispute information that is reporting in error - before
that information negatively impacts their job search.
The
problem is that the FCRA gives Consumer Reporting Agencies (CRA's) 30 days to
respond to disputes and correct errors that appear in
their screening reports. This can be a problem for applicants and employers. The
answer is to provide the Pre-Adverse Action Notification (including a copy of
the report) as soon as possible - and then to work with your
pre-employment
screening company to expedite the investigation.
Note that
direct-to-consumer employment screening reports solve this problem by putting
the consumer in control of their own data. Applicants order, review and
(if necessary) dispute content they believe is being reported in error prior to
granting access to the employer - there is no need to advise them of their right
to (or provide them with) a copy of their screening report.
Section 607(b) of the FCRA says that, "Whenever a consumer reporting agency
prepares a consumer (screening) report it shall follow reasonable procedures to assure
maximum possible accuracy of the information concerning the individual about
whom the report relates" - "reasonable procedures" being the operative words.
CRA's cannot (as a practical matter) guarantee error free reports - only that
they have taken reasonable steps to ensure maximum possible accuracy.
Specifically, it is important to know that your pre-employment screening company takes
the steps needed to determine whether the data reported is correctly associated
with the applicant in question. It is equally important (to employers) to know
that your company doing their background checks is thorough - meaning they use the right
tools and conduct addition (conditional) searches as may be required based on AKA's
(other names) and addresses (disclosed or undisclosed).
It
turns out that the right methodology delivers superior results for consumers and
employers alike. The right methodology may cost a little more - and may take a
little longer. But given the stakes, it is best for all concerned (the consumer,
employer & CRA).
Contact
Moco Incorporated if you have questions or
need assistance with your employment screening needs.
Visit
MyScreeningReport.com®
for information about a direct-to-consumer
or applicant initiated alternative to the traditional background screening model
- ideally suited for small businesses.
MyScreeningReport.com®
is a service of
Moco Incorporated.