Fair Credit Reporting Act
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Employers conducting credit checks on job applicants or current employees should be aware that they are subject to new requirements under the Fair Credit Reporting Act. The new requirements provide that:
1. A consumer reporting agency may furnish a consumer report for employment purposes only if the employer certifies compliance with the new requirements and that the report will not be used in violation of federal or state equal employment opportunity laws or regulations;
2. A consumer report may not be procured for employment purposes unless a clear and conspicuous disclosure first has been made to the applicant or employee that a consumer report may be obtained for employment purposes. A technical requirement that could trip up the unwary requires that this disclosure be in a document that consists solely of the disclosure, not part of another document such as an employment application;
3. An applicant or employee must have given prior written authorization to an employer for the procurement of a consumer report; and
4. Before an employer can take any adverse action based in whole or in part on a consumer report, the employer must give the applicant or employee a copy of the report and a written description of his or her rights under the Act.
© 1998 Fargarson & Brooke