Companies routinely conduct background checks on applicants for employment or current employees being considered for promotion to assist them in selecting the best candidates. As of January 1, 2013, employers required to follow the FCRA must provide new and updated notices to applicants and employees. The recently created Consumer Financial Protection Bureau (CFPB) issued these new requirements and deadlines. The CFPB is now the enforcement authority over the FCRA. Prior to the creation of this new federal agency, the Federal Trade Commission enforced the FCRA. The 2013 change also includes modification to the mandatory “Summary of Rights” form. Now is a good time for businesses to review their procedures for conducting background checks and the forms they use to make sure that they are in compliance with federal and state laws. When deciding upon an outside agency, companies should ask about the agency’s FCRA compliance program and may want counsel to review any disclosure or consent forms provided by the agencies. They should also train those making hiring or personnel decisions involving a background check in this area of the law.

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