FCRA and DOT Compliance
There are legal consequences for employers who don’t comply with the FCRA, whether they fail to get an applicant’s sign release form before getting a copy of their driving record or other background report, fail to provide the appropriate disclosures in a timely way, or fail to provide adverse action notices to unsuccessful job applicants. test click
An employer’s failure to comply with the FCRA can result in fines and penalties, as well as civil and criminal lawsuits. When an employer negligently fails to comply with the FCRA, the employer is liable to the employee for any actual damages caused by the employer’s negligence, as well as the employee’s attorneys’ fees. If willful non-compliance is involved, the employer faces punitive damages in addition to any actual damages.
An Employer must certify to the Consumer Reporting Agency that it will follow the FCRA
Prior to supplying a Consumer Report, an employer must certify to the Consumer Reporting Agency (CRA), that the employer will follow all the steps set forth in the Fair Credit Reporting Act. These include:
- That the employer will use the information for employment purposes only.
- That the employer will not use the information in violation of any federal or state equal opportunity law.
- That the employer will obtain all the necessary disclosures and consent/release forms.
- That the employer will give the appropriate notices in the event that an adverse action is taken against an applicant based in whole or in part on the contents of the Consumer Report.
An Employer must obtain a Signed Release form and a separate Disclosure form from a job applicant before obtaining a Consumer Report
If adverse action is intended or may be intended as a result (based in whole or in part) of a Consumer Report, then the applicant is entitled to certain documents
Before taking the adverse action (Deciding NOT to hire your applicant), the employer must provide the following information to the applicant:
If an employer denies a job applicant, terminates an employee, rescinds a job offer, or denies a promotion based on the results of a background check and/or a driving record, it is considered and adverse action. Under federal law there are required steps that must be followed in order to be in compliance with the Fair Credit Reporting Act (FCRA).
There are two notice requirements under the FCRA
Notice must be give to an applicant after an adverse action
If after sending out the documents required in Step 3, the employer intends to make the decision final, the employer must take one more step. The employer must send the applicant a Notice of Adverse Action informing the job applicant that the employer has made a final decision, along with another copy of the form “Summary of Your Rights under the Fair Credit Reporting Act.
The purpose of this second notice is to give job applicants the maximum opportunity to correct any incomplete or inaccurate reports that could affect their chances of employment.
TR Information Services does not own the information being reported in a consumer report. Driving Record data comes directly from the stat’s DMV. We do however take the accuracy of the information very seriously. In the event that your applicant feels that the information reported on the background check is inaccurate, please fill out the Reinvestigation/Dispute Form
Companies who are not FCRA compliant are at risk!
Just ask these companies what can happen when your company in not compliant with the FCRA
