Is it Legal?                      

WHAT MUST EMPLOYERS WHO USE CONSUMER REPORTING AGENCIES KNOW?    Quick overview from Federal Law

LEGAL SECTIONS TO REVIEW:

The Fair Credit Reporting Act is the Federal Law regarding background screening.  This law refers to not just credit reporting, but any background check.   On September 30, 1997, the Consumer Credit Reporting Reform Act amended the Fair Credit Reporting Act.

1. Why Must You Know This law?
2. Definitions
3. Permissible Purpose of Reports
4. Disclosure To Consumers
5. Adverse Action
6. Contents Within Reports
7. Employer's Immunity
8. Requirements of Users of Consumer reports

On December 4, 1998, the Clarification Act was passed amending the Fair Credit Reporting Act.

1. Important Provisions
2. Provisions That Affect Companies in the Transportation Industry

State laws still apply when performing a background check.  California has its own Fair Credit Laws and more.  Common thinking is that if you follow California law...you are within the law in most states.

1. Disclosure Requirements When Seeking Credit Reports
2. Permissible Purposes for Investigative Reports
3. Time and Manner of Supplying Information
4. Disclosure Requirements When Seeking Investigative Reports
5. Contents of Reports
6. Adverse Action
7. Use of Arrest Records
   1.  California Labor Code
   2.  California Fair Employment and Housing Commission
8. References

The function of the employment screening process is to provide the employer with the maximum amount of valid available information about prospective candidates in order to assist in the hiring, promotion or retention decision. Screening is as important for liability protection as it is for the selection of good workers. Screening is confirming the good judgment already used in the hiring decision. The process is not one of prying into someone's background, but verifying information already provided by the applicant when applying for a position with the company.