Effective January 1, 2013, employers must use revised forms in connection with their requirements under the Fair Credit Reporting Act (“FCRA”).
The FCRA applies to employers who use consumer reports, or reports containing information from a consumer reporting agency, that are used for making employment decisions. These reports or background checks, may include criminal background reports, motor vehicle reports, or verification of education, licenses, and employment history. When using consumer reports, employers must provide certain disclosures to the applicant or employee.
Three FCRA disclosures have been revised because the federal Consumer Financial Protection Bureau (the “Bureau”) has assumed rule making authority from the Federal Trade Commission (“FTC”) for the FCRA. These disclosures are: 1) Summary of Rights Under the Fair Credit Reporting Act (a notice given by the employer to the employee or applicant); 2) Notice To Users Of Consumer Reports (a notice given by the consumer reporting agency to the employer); and 3) Notice to Furnishers of Information (a notice given by the consumer reporting agency to someone providing information).
The changes to these notices primarily deal with disclosing that information about rights under the FCRA can be found here or by contacting the Bureau instead of the FTC.
The revised forms are found in Appendices K, M and N to 12 C.F.R. part 1022 (the regulations interpreting the FCRA). The Summary of Rights that employers must provide to employees and applicants can be found here.