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New Year = New Hires!

by Megan Consolo on January 5th, 2012

As your company prepares for new hires in 2012, it’s a great time to take a look at your current background screening process. We’re not just talking about criminal checks and drug tests here, but everything from application to adverse action. What is adverse action, you say? Unfortunately this is a question we hear far too often from our clients. According to the Fair Credit Reporting Act (FCRA), if your company uses a CRA, or Consumer Reporting Agency, such as Credential Check, you as the employer must ensure compliance with the FCRA.

To comply with the FCRA an employer’s responsibilities include the following

  • Disclose the intent to obtain a consumer report;
  • Obtain authorization from the candidate to obtain a consumer report;
  • Provide the candidate with pre-adverse action notice if the employer plans to take an adverse action based in whole or in part on information contained in the consumer report which includes instructions on how to dispute the reported information; and
  • Provide the candidate with an adverse action notice after taking adverse action based in whole or in part on information contained in the consumer report which is sent after a reasonable* amount of time from when the Pre-Adverse Action Notification was sent.

*Note: The EEOC has issued an opinion letter regarding a reasonable amount of time being five business days.

Now is a great time to implement these policies within your company! For help with this or any other background screening needs, call Credential Check at (888) 689-2000.

Happy New Year!

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