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Legal State & Federal Policies

FCRA
The Fair Credit Reporting Act sets the standard for how an employer collects and uses background information in determining whether or not an applicant is qualified for a position. The FCRA regulates Consumer Reporting Agencies (CRAs) are entities that collect and disseminate information about consumers to be used for credit evaluation and certain other purposes, including employment. Credit bureaus, a type of consumer reporting agency, hold a consumer's credit report in their databases. CRAs have a number of responsibilities under FCRA. Employers who conduct their own background checks do not need to follow the FCRA, but put themselves at greater liability. Under the FCRA, the employer must obtain, in writing, Authorization for release of information to complete the background check. Additionally if the employer decides to not hire an applicant based on the results of the background check, a pre-adverse action letter msut be provided to the applicant. The letter should state a reasonable time to dispute the report. Once the dispute is completed and a contention is not made or the employer still decides to not employee the applicant; under the FCRA, the employer must send the applicant the adverse action letter. By utilizing a CRA to conduct pre-employment screening and following the FCRA, employers help protect themselves from liability. If an employer is NOT following the guidelines of the FCRA and incorrectly denies a person employment the employer can be exposed to potential lawsuits.

Adverse Action Cookie Cutter Letter
Identi-Check is providing a sample Adverse Action letter. This letter would be sent if the employer decides to not hire an applicant based on the results of the background check.
Click Here to Download Adverse Action Cookie Cutter Letter

Consumer Rights Under the FCRA
Click Here to Download Consumer Rights Under the FCRA

HR policy for background screening
Identi-Check has provided a generic H.R. Policy that can be modified to fit your business' Employment Background Policy.
Click Here to Download Generic H.R. Employment Background Policy

HR policy for Drug testing
Identi-Check has provided a generic H.R. Policy that can be modified to fit your business' Drug Testing Policy.
Click Here to Download Generic H.R. Drug Testing Policy