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
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