Mega Group Online

USE OF BACKGROUND CHECK INFORMATION

Have you ever had a background check conducted for an employee and then wondered if you can use the information provided for another purpose?

The Federal Trade Commission recently posted an article to its blog explaining how, in accordance with the FCRA, an employer or other user of a consumer report cannot “double dip” the information contained within a report. This means that consumer reports ordered for one reason cannot be used for another.

Employers who engage the services of a background screening company should also make sure to read the Notice to Users of Consumer Reports: Obligations of Users Under the FCRA, which explains employers obligations under the law.

Some employer obligations to remember include:

  • Having a “permissible purpose” to request a consumer report from a background screening company.
  • Providing notice regarding the background investigation and securing the person’s written consent.
  • Adverse action notices must be sent out in the event that a negative decision is made based on the content of the consumer report.