Fair Credit Reporting Act

Applicant/employee

Applicant/employee must give employer consent prior to obtaining a consumer report; (employee has to sign document saying you have my permission to run this check)

Consents can be "evergreen" (check state laws)-

Consents can be "evergreen" (check state laws)-The tree never looses leaves they always stay green the consent goes on forever. They are not allowed in california

What must Employers provide to the CRA before getting a consumer report:

Employers must provide to the CRA before getting a consumer report: It has notified and obtained consent from the applicant/employee; It will comply with the FCRA requirements; and It will not use information in the report to violate any applicable Federal or State EEO law or regulation.

What do consumer include:

credit, criminal history, drug testing, education, employment verification and public record information. In addition, reports regarding a person's credit worthiness, credit standing, credit capacity, character, general reputation, and personal characteristic, can be consumer reports.

A consumer report is obtained for an ____________ when used "for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee"; and

A consumer report is obtained for an "employment purpose" when used "for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee"; and

Adverse action"

An adverse action is an adverse employment action to any current or prospective employee made, in whole or in part, on the basis of information in a consumer report. If you are going to take an adverse action to an employee based on an adverse employment action you have to go through steps

Before an employer can obtain a consumer report:

Notification Applicant/employee must give employer consent Consents

Notification

Notification must be made in writing by a stand-alone document; DOCUMENT MUST BE SEPARATE (these laws vary by state)

The FCRA provides what when consumer reports are used for employment purposes.

The FCRA provides special protections when consumer reports are used for employment purposes.

What does the Fair Credit Reporting Act (FCRA) cover?

What does the Fair Credit Reporting Act (FCRA) cover? - 15 U.S.C. § 1681 - FCRA covers the activities of: Consumer reporting agencies (CRAs)-university Kentucky did the googling themselves they did not go thru a company which Users of consumer reports Furnishers of information for consumer reports Make sure there is separation on someone doing the research and the person hiring. For example have the intern google them and say find anything I should no from hiring standpoint not if they are disabled not of their religion things such as they lied about degree or something.

After taking an adverse action:

Notify the applicant/employee of employment decision

Before an employers can take an adverse action it must:

Notify the applicant/employee; -send them a letter dear applicant we have conducted the background check we saw child molestation unless u can provide information this is a mistake Provide a copy of the consumer report relied on; and Include a copy of, "A Summary of Your Rights Under the Fair Credit Reporting Act."

Employers must comply with the FCRA when....?

conduct background checks for employment. "Permissible purpose"; -hiring or potentially promotion someone Use of a CRA versus an employer conducting their own background check; ALSO DRUG TESTING