It Is Time To Update Background Check Documents

Employers that obtain background checks for preemployment or other employment screenings need to update their Fair Credit Reporting Act (FCRA) disclosures. The Consumer Financial Protection Bureau (CFPB) has published an updated version of the Summary of Consumer Rights employers are required to provide before taking an adverse employment action because of a background check report. Changes have been made to both the English and Spanish versions of the form.

The Fair Credit Reporting Act requires an employer to notify an applicant or employee – via a written disclosure — that the employer may obtain a “consumer report” about him. A “consumer report” is any information bearing on an applicant’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. The FCRA also requires the employer to provide additional notice to the applicant or employee before taking an adverse action because of information contained in a consumer report.

While the changes to the Summary are not substantive, and the CFPB has given employers until March 20, 2024, to begin using the new form, employers should begin using the new form sooner, rather than later. If you need assistance with these forms or have questions about the Fair Credit Reporting Act’s requirements, please contact a KZA attorney. 

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.