Most employers conduct background checks of applicants in one form or another.
Unfortunately, many employers fail to follow the strict notice provisions required by law governing background checks. Requirements for background checks are confusing, not only because of the burdensome notice requirements, but because both federal and state laws cover this topic. While there have not been recent substantive changes in these laws, it is important to periodically review them in order to ensure compliance, particularly in light of the increase in lawsuits, including class actions, which target companies for purported violations of these laws. The notice must inform the consumer that a report will be used and the source of the report, and must contain a box that the consumer can check to receive a copy of the credit report. If the consumer checks the box requesting a copy of the report, the employer must request that a copy be provided to the consumer when it requests its copy from the credit reporting agency.