New Important Court Decisions! Employers, now it’s REALLY TIME to look at those background check disclosure and authorization forms!

In light of another important federal court case out of California, employers should review their current disclosure forms for “clear and conspicuous” language consisting “solely” of the disclosure under the Fair Credit Reporting Act (FCRA). Creative Services, Inc. (CSI) originally reported this litigation trend in 2017 and again in 2019 urging employers to review and update disclosures that may include “extraneous” information.

WHAT YOU NEED TO KNOW

The court in this most recent case sets the stage of willful violations by employers under the FCRA based on what is included in the background check disclosure form. CSI strongly encourages you to review your current disclosure forms with your counsel for any extraneous language that may be included.

Disclosure and authorization form compliance is an employer’s obligation under the FCRA. CSI publishes Sample Disclosure and Authorization forms on our website as samples only for which employer’s counsel, compliance and/or other specialists can review and edit as necessary.

CSI will be holding a virtual educational session on the impacts of recent litigation trends on this topic on June 17th, 2021 at 1pm EDT. More detailed information will follow regarding the session, however, you can register here if you would like to reserve your spot.

WHAT YOU NEED TO DO

Review your current disclosure and acknowledgement forms for FCRA compliance including any electronic disclosure forms integrated into an online portal.

• Ensure your background check company includes your newest, most recently reviewed version in any electronic consent platform being used.
• Train all hiring managers, recruiters and HR staff on any newly implemented forms.
• Consult with your legal counsel or labor law attorney as necessary.
• Be on the lookout for an invitation from CSI regarding an upcoming virtual session on this topic.

Information provided should not be construed as legal advice or a legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult a lawyer concerning your own situation and any specific legal questions you may have.