When an employer uses any third party to obtain a background report on applicants or employees, the Fair Credit Reporting Act requires that:
1. An employer must disclose, in writing, its intent to use a consumer report. The document must not be part of the application itself and must not be included with any other document.
2. An employer must obtain the written permission from the applicant. The applicant will sign a document authorizing the employer to obtain and use the background report. The employer must get this written authorization prior to obtaining the report.
3. If the employer intends to take an adverse action, such as a delay in hiring, not considering the applicant further or terminating an employee based on the background report, then the employer must give the consumer reasonable advance notice of its intent to take the adverse action and a copy of the report. This is for the purpose of giving the consumer an opportunity to review and correct any inaccuracies in the background report.
4. If the background report includes information obtained from a public record, such as conviction records, then the person or entity providing the report must also send the consumer a copy of the report and the name and address of the person to whom it provided the report.