NAPBS & MYB Part 4: Legal Compliance

NAPBS guidelines, and the accreditation that comes with being a member, is the legal issues that come with background screening and the legislation that companies must adhere to. Depending on whether an individual employer or a third party agency is conducting a pre-employment background check, both federal and state laws need to be considered. While there are national guidelines that must be followed, legislation can vary depending on the state, specifically in certain circumstances. A key part of background screening legislation is the Fair Credit Reporting Act (FCRA), much debated in recent months, and NAPBS allocate an entire section to this. The FCRA regulates more than just credit reports. It establishes specific requirements for the compilation and handling of a background check, and applies to both individual employers and third party agencies. There are three main stages to this: – Prior to receiving a consumer report, an employer must certify to the CRA in writing that it will do the following:

• Use the information for employment purposes only
• Not use the information in violation of any federal or state equal opportunity law
• Obtain all the necessary disclosures and consents required by the FCRA
• Give the appropriate notices in the event an adverse action is taken against an applicant
• Give the additional information required by law if an Investigative Consumer Report is needed

– Employers must provide a clear disclosure to the applicant and receive written authorization before obtaining a report

– Employers need a disclosure form for an Investigative Consumer Report and receive a copy of the FTC document

Additionally, they note that whether or not any adverse action is required, an employer must provide the applicant with a copy of the report and the FTC document.

Obviously the guidelines go into a lot more detail than I have here, but I have tried to provide you with a concise summary of what some of the more important legal issues are regarding background screening and how they are implemented. As always, if you have any questions, get in touch.

Tomorrow is the fifth and final installment of NAPBS & MYB: Decision Making. Saving the best for last, make sure you pay us a visit to find out what the process is and how you can make sure that you make the right decision!