Documents and Forms You'll Need to Conduct Background Checks in Compliance with
the Fair Credit Reporting Act

Before You Check

Under the Fair Credit Reporting Act (FCRA), before conducting a background check, you'll need to inform the employee or applicant that the check will be part of the hiring process, and obtain written permission from the individual via a release authorization form that appears on a separate page from the employment application.

Sample release authorization form and Fair Credit Reporting Act disclosure

Intent to Take Adverse Action

If the background report contains negative information, and you intend to deny the applicant employment or terminate an existing employee based in whole or in part on this information, you must advise the individual of this in a pre-adverse action letter. The law also requires you to provide the individual with the opportunity to dispute and/or correct the report before you deny or terminate employment. You must also provide the employee or applicant with a copy of the consumer's rights under the FCRA as prescribed by the FTC.

Sample Pre-Adverse Action Letter

Summary of Consumer Rights Under FCRA

Final Notification of Adverse Action

If you proceed with denying the applicant employment, you will need to notify him/her of this adverse action. That notice must include the name, address, and telephone number of the consumer reporting agency (CRA) that supplied the background report, a statement that the CRA did not make the decision not to hire the individual and cannot provide the reasons for the adverse action, as well as notice of the individual's right to dispute the accuracy or completeness of the report and his right to an additional free report upon request within 60 days.

Sample Additional Language for Final Adverse Action Letter

The materials on this Web site are provided as a service to the customers of Truescreen. The site and its contents are designed solely for informational purposes, and should not be inferred or understood as legal advice or binding case law. Persons in need of legal assistance should seek the advice of competent legal counsel. Although care has been taken in this Web site's preparation, Truescreen cannot guarantee the accuracy, currency, or completeness of the information, text, links or other items contained within it. Anyone using this information does so at his or her own risk.