Overview: We previously reported that the Ninth Circuit Court of Appeals issued an important ruling with implications for employers nationwide. The court ruled that employers who include a liability waiver in background check disclosure and consent forms provided to prospective employees willfully violate the Fair Credit Reporting Act (FCRA). This update serves as a reminder of the importance of using a compliant background check consent form.
Coverage: The holding of this case technically only applies to employers in Alaska, Arizona, California and Hawaii. However, all employers who perform background checks should carefully review their FCRA disclosure forms because the broader issue of inappropriate /extraneous information in consent forms is a hot button issue in litigation.
Effective: Currently in effect.
Action Required: Employers should review their current background check consent / disclosure forms to ensure they include only the statutorily required disclosure and permitted authorization form. As a service to clients, ADP Screening and Selection Services makes available a sample background check disclosure and authorization form. You should ensure that you are using the most recent version of this form, which can be found on FormSource in the pre-employment section or your forms library. Please contact your Human Resources Business Partner if you need assistance locating this sample.
As always, please feel free to contact your Human Resources Business Partner if you have any questions