When you’re looking to hire for an open position within a company, you might decide to hire a third party to complete the background check. These firms are experts at compiling information about a person and have more access to information than you would have on your own. When using one of these services, you’ll receive a consumer report and there are certain guidelines that you have to abide by. These are set by the Fair Credit Reporting Act (FCRA) and have been created to protect the employee. Here are some things that you should know about complying with the guidelines of a CRA background screening.
Prior to Receiving the Consumer Report
Before you order a consumer report on a candidate, you need to inform the candidate that you’ll be using their personal information from the report in the hiring decision. This must be done in written form and in a stand-alone format. That means that the notice can’t be included in the employment application, but needs to be provided separate from other documents. You’ll also need written permission from the person that their information can be used in a consumer report. The easiest way to do this is by including a signature section in the document you provide for the employee.
Before Taking Adverse Action
If you receive information from the consumer report that causes you not to hire the candidate, this is considered taking adverse action. Before you can take such an action, there are certain steps that need to be completed. The candidate must be provided with a notice that includes a copy of the consumer report you used to reach your decision. They must also be provided with a copy of A Summary of Your Rights Under the Fair Credit Reporting Act document. This should be provided for you from the company that provided the report. Make sure that you receive that document before completing your contact with the consumer report company.
After Taking Adverse Action
If you use information from the consumer report in the decision not to hire someone, there are certain steps you must take. This includes providing notice to the applicant that the report had an impact on your decision. This can be done orally, written, or electronically. The notice should include the rights of the applicant, including their right to see the report and a chance to correct any inaccurate information.
When a consumer report is used to decide whether or not to hire someone, there are certain things that must be provided for the applicant. Knowing these things will ensure that you avoid any potential trouble. These are three things that you should know before completing a CRA background screening.